NYSE$HLLY
Holley Inc · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Holley's financial performance was impacted by supply-chain disruptions and demand normalization, but the company remains confident in its core enthusiast base.
Holley Inc. reported a decrease in net sales and gross profit for Q4 2022, with a net loss of $(15.2) million. The company is focused on cost structure alignment and free cash flow improvement.
- Net Sales decreased 14.3% to $154.2 million compared to the prior year's fourth quarter.
- Gross Profit decreased 36.8% to $47.3 million compared to the prior year's fourth quarter.
- Net Loss of $(15.2) million, or $(0.13) per diluted share, compared to a Net Loss of $(18.0) million, or $(0.16) per diluted share, in the prior year's fourth quarter.
- The company reached an agreement with its lending group to amend the net leverage covenant applicable to the revolver.
Headline financials
Revenue & EPS history
Holley · Revenue · Quarterly
$154M
Forward guidance
Holley anticipates net sales between $625 and $675 million and adjusted EBITDA between $108 and $122 million for the full year 2023.
Tailwinds
- Operational improvements and cost initiatives are expected to drive approximately $30 million of year-over-year cost savings in 2023.
- Anticipated improvements in gross margin driven by improved shipping costs as the result of a recently negotiated contract with a new 3rd party logistics provider.
- Reduction in force expected to contribute $15 million in savings.
- Focus on restoring profitability.
- Optimizing inventories.
Headwinds
- 2022 results were challenged by multiple factors.
- Normalization to pre-COVID trend growth levels.
- Ongoing supply-chain disruptions.
- Market demand
- De-leveraging our balance sheet in 2023 and beyond.
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 Q4 2022
+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
| Quarter | Report date | Reaction (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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