NYSE$GHM

Graham Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported breakeven net income and EPS for the third quarter of fiscal year 2020.

Graham Corporation reported a revenue increase of $25.3 million compared to $17.2 million in the third quarter of fiscal year 2019. Net income and EPS were breakeven for the quarter.

  • Third quarter revenue of $25 million.
  • Third quarter orders of $20 million.
  • Backlog remains strong at $123 million as of December 31.
  • Reiterating fiscal 2020 revenue guidance of 20% to 26% growth and revising gross margin to between 21% and 22%.

Headline financials

Total Revenue

$25.3M

Previous: $17.2M+47.0%
EPS (adj)

$0.00

Previous: $0.01-90.9%
Gross Margin

16.0%

No prior period
Orders

$20M

No prior period
Backlog

$123M

No prior period
Capital Expenditures

-$1.39M

Previous: -$1.47M+5.6%
Free Cash Flow

-$5.51M

Previous: $7.06M-178.0%
Net Income

$9K

Previous: $95K-90.5%
Operating Income

-$7.39M

Previous: -$15.7M+52.8%
Gross Profit

$4.04M

Previous: $3.74M+8.1%
Cash & Equivalents

$10.9M

Previous: $16.7M-34.9%
Total Assets

$147M

Previous: $157M-6.4%

Revenue & EPS history

Graham · Revenue · Quarterly

$25.3M

Q3 2020+47%vs Q3 2019
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Graham is updating its fiscal 2020 guidance which excludes the divested Energy Steel business.

Tailwinds

  • Revenue anticipated to be between $100 million and $105 million.
  • SG&A expense expected to be between $17 million and $17.5 million
  • Pipeline continues to be very active as customers plan their capacity expansion and upgrade projects.
  • Gaining traction with initiatives to expand revenue opportunities derived from installed base.
  • Penetrating new geographic markets, and broaden revenue from the U.S. Navy.

Headwinds

  • Gross margin expectations between 21% and 22%, with the reduction caused by project mix
  • Effective tax rate anticipated to be approximately 20%
  • Guidance includes fulfillment of a short cycle naval order that is in backlog.
  • If unable to complete naval order during the quarter, revenue will likely fall below the lower range of guidance.
  • Comparison of orders in the first nine months of fiscal 2020 versus the same prior-year period is impacted by timing of customer order releases.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.1%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+2.7%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+22.9%

Q2 2025

Best reaction

-25.5%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-10.3%-2.7%
Q3 2026+12.9%+19.7%+10.7%
Q2 2026+0.5%-2.0%-6.8%
Q1 2026-18.3%-15.9%-14.4%
Q4 2025+6.3%+10.1%+25.7%
Q3 2025-17.4%-20.4%-31.9%
Q2 2025+22.9%+24.6%+29.6%
Q4 2024+12.6%+17.7%+7.7%
Q3 2024+11.7%+15.9%+20.8%
Q2 2024-4.4%+1.4%+6.2%
Q1 2024+15.7%+20.3%+17.3%
Q1 2025+15.7%+20.3%+17.3%
Q4 2023+11.1%+11.1%+11.3%
Q3 2023+11.6%+16.4%+32.7%
Q2 2023+18.1%+16.6%+13.5%
Q1 2023+12.3%+17.7%+44.7%
Q4 2022+16.4%+20.6%-9.0%
Q3 2022-25.5%-23.0%-34.1%
Q2 2022-3.2%-1.5%-1.8%
Q1 2022-4.8%-9.7%-9.3%
Q4 2021+2.3%-0.1%-6.7%
Q3 2021-5.3%-2.7%-1.5%
Q2 2021-0.3%+1.5%+21.6%
Q1 2021+6.1%+5.8%+8.6%
Q4 2020-10.1%-10.1%-13.7%
Q3 2020-7.8%-10.8%-17.2%
Q2 2020+10.4%-2.0%-7.0%
Q1 2020+1.2%+1.8%-11.7%
Q4 2019+0.0%+1.4%-0.9%
Q3 2019-1.5%-1.1%-0.8%
Q2 2019+1.0%+1.2%-10.4%
Q1 2019+3.5%+10.0%+9.4%
Q4 2018+1.2%-1.3%-1.5%
Q3 2018+5.9%+0.5%-6.9%
Q2 2018-10.4%-11.1%-10.0%
Q1 2018-3.1%-3.0%-0.9%
Q4 2017-0.7%-3.5%-6.1%
Q3 2017+3.4%-0.3%+3.5%
Q2 2017-0.1%-3.6%+24.4%
Q1 2017-4.3%-4.2%+3.0%
Q4 2016-4.8%-1.1%+1.2%
Q3 2016+0.2%
Q2 2016-3.4%
Q1 2016+8.8%
Q4 2015-5.9%
Q3 2015-8.9%
Q2 2015+0.1%
Q1 2015-3.4%
Q4 2014+6.5%
Q3 2014-4.6%
Q2 2014-2.8%
Q1 2014+5.2%
Q4 2013+13.6%
Q3 2013+1.8%
Q2 2013+0.9%
Q1 2013+1.2%
Q4 2010-0.6%
Q4 2012-6.5%
Q3 2011+0.5%
Q3 2012+0.5%
Q2 2012+6.3%
Q4 2011-17.6%
Q2 2011-17.6%
Q1 2011-17.6%
Q1 2012-17.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro