NYSE$HLLY

Holley Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong third quarter results with year-over-year revenue growth and meaningfully improved margins through operational improvements.

Holley reported a 1.1% increase in net sales to $156.5 million, a 20.6% increase in gross profit to $58.4 million, and a net income of $0.8 million, or $0.01 per diluted share. The company's adjusted EBITDA was $29.7 million, and free cash flow was $21.7 million. Holley also reduced its debt by $25 million in September.

  • Net sales increased by 1.1% to $156.5 million compared to the prior year.
  • Gross profit increased by 20.6% to $58.4 million, with a gross margin of 37.3%.
  • Net income was $0.8 million, or $0.01 per diluted share, compared to $31.6 million, or $0.27 per diluted share, last year.
  • Adjusted EBITDA was $29.7 million compared to $16.4 million last year, with a margin of 19.0% versus 10.6% last year.

Headline financials

Total Revenue

$157M

Previous: $155M+1.1%
EPS (adj)

$0.03

Previous: -$0.04+175.0%
Adjusted EBITDA

$29.7M

No prior period
Adjusted EBITDA Margin

19.0%

No prior period
Capital Expenditures

-$4.42M

Previous: -$11.7M+62.4%
Free Cash Flow

-$3.67M

Previous: $19.8M-118.5%
Net Income

$752K

Previous: $31.6M-97.6%
Operating Income

$19.3M

Previous: $3.06M+531.0%
Gross Profit

$58.4M

Previous: $48.4M+20.6%
Cash & Equivalents

$36.8M

Previous: $16.6M+121.8%
Total Assets

$1.22B

Previous: $1.26B-3.0%
R&D Expense

$6.1M

No prior period

Revenue & EPS history

Holley · Revenue · Quarterly

$157M

Q3 2023+1.1%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Holley revised its outlook for 2023 for certain guidance in comparison to the outlook provided by Holley in its earnings release on August 10, 2023.

Tailwinds

  • Net Sales: $645 - $675 million (Previous Outlook: $635 - $675 million)
  • Adjusted EBITDA: $123 - $128 million (Previous Outlook: $118 - $128 million)
  • Capital Expenditures: $6 - $8 million (Previous Outlook: $5 - $10 million)
  • Depreciation and Amortization Expense: $24 - $26 million (Previous Outlook: $23 - $25 million)
  • Interest Expense: $58 - $62 million (Previous Outlook: $58 - $62 million)

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+5.4%

Avg return

Earnings day

+4.0%

Avg return

5 days after

+1.0%

Avg return

30 days after

59%

13 / 22 earnings

Positive

+49.5%

Q4 2022

Best reaction

-14.6%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-13.0%-17.6%-22.4%
Q4 2025-12.7%-16.2%-22.3%
Q3 2025+36.8%+41.0%+57.5%
Q1 2025-14.6%+7.2%+2.4%
Q4 2024+24.2%+0.4%-4.2%
Q3 2024+3.6%-1.1%-0.4%
Q2 2024-8.2%-12.3%-9.6%
Q1 2024-3.6%-5.8%-13.4%
Q4 2023-11.5%-13.0%-8.0%
Q3 2023-14.0%-11.8%+0.5%
Q2 2023+27.2%+18.0%-15.3%
Q1 2023+18.5%+15.8%+36.3%
Q4 2022+49.5%+48.0%+14.6%
Q3 2022-4.7%-6.5%-23.4%
Q2 2022+1.2%-1.7%-7.9%
Q1 2022+14.2%+20.9%+20.0%
Q4 2019+8.9%+5.4%+1.3%
Q4 2021+7.4%+4.3%+7.2%
Q3 2021+7.1%+11.3%+2.7%
Q2 2021+1.1%-2.0%+4.2%
Q1 2021+0.0%+0.0%+2.2%
Q4 2020+0.3%+4.3%+0.8%
Q3 2020

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