NYSE$MG

Mistras Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Mistras Group reported a slight decrease in revenue but highlighted growth in key markets and cost-saving initiatives.

Mistras Group's Q2 2023 revenue was $176.0 million, a 1.7% decrease year-over-year. Despite the revenue decline, the company saw strong growth in Commercial Aerospace and Data Solutions. Net income was $0.3 million, and Adjusted EBITDA was $15.3 million. The company is implementing cost-saving initiatives expected to yield $6.2 million in annualized savings.

  • Revenue decreased by 1.7% to $176.0 million due to delayed Defense contract and decreases in Power Generation, offset by growth in Commercial Aerospace and Data Solutions.
  • Gross profit was $49.7 million, with a gross profit margin of 28.2%.
  • Net income was $0.3 million, and Adjusted EBITDA was $15.3 million.
  • Cost-saving initiatives are expected to yield approximately $6.2 million in annualized savings.

Headline financials

Total Revenue

$176M

Previous: $179M-1.7%
EPS (adj)

$0.05

Previous: $0.15-66.7%
Adjusted EBITDA

$15.3M

Previous: $18.3M-16.4%
Capital Expenditures

-$9.8M

Previous: -$6.69M-46.5%
Free Cash Flow

-$9.46M

Previous: -$2.05M-361.9%
Net Income

$337K

Previous: $4.64M-92.7%
Operating Income

$3.89M

Previous: $9.58M-59.3%
Gross Profit

$49.7M

Previous: $53.6M-7.2%
Cash & Equivalents

$18M

Previous: $18.6M-3.3%
Total Assets

$541M

Previous: $556M-2.6%

Revenue & EPS history

Mistras · Revenue · Quarterly

$176M

Q2 2023-1.7%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Mistras · $179M total across 3 segments · Q2 2023

  • North America
    $146M
  • International
    $30.3M+2.3%
  • Products and Systems
    $3.33M+25.5%

Forward guidance

The Company is updating its guidance ranges, to reflect current market conditions and the Company’s focus on profitable growth and cost savings. Revenue for the full year 2023 is now expected to be between $700 and $720 million, due primarily to reductions in legacy Oil and Gas revenue particularly the Downstream sub-category. Adjusted EBITDA is now expected to be between $68 and $71 million.

Tailwinds

  • Focus on profitable growth
  • Cost savings initiatives
  • Revenue expected between $700 and $720 million
  • Adjusted EBITDA expected between $68 and $71 million

Headwinds

  • Reductions in legacy Oil and Gas revenue
  • Operating cash flow will be adversely impacted by certain cash expenses to achieve cost savings
  • Free Cash Flow guidance is being adjusted to between $23 and $25 million due to the reduction in the Company’s Adjusted EBITDA guidance and higher than anticipated Capital Expenditures of over $20 million.
  • Downstream sub-category revenue reduction
  • Higher than anticipated Capital Expenditures of over $20 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 Q2 2023

Historical avgQ2 2023

+0.5%

Avg return

Earnings day

-1.5%

Avg return

5 days after

+1.1%

Avg return

30 days after

56%

35 / 62 earnings

Positive

+41.9%

Q1 2015

Best reaction

-25.0%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-9.1%-5.8%
Q4 2025-5.8%-8.2%-2.4%
Q3 2025+0.1%-1.0%+24.0%
Q1 2025-0.4%-6.9%-2.6%
Q4 2024+12.2%+7.9%+1.4%
Q3 2024-25.0%-25.5%-17.4%
Q2 2024+1.0%-1.3%+19.2%
Q1 2024+5.6%+2.3%-2.3%
Q4 2023+8.1%+7.6%+15.6%
Q3 2023+10.2%+10.8%+24.3%
Q2 2023-21.4%-31.1%-30.9%
Q1 2023-15.8%-14.2%-14.2%
Q4 2022+3.0%+5.6%+38.2%
Q3 2022-13.4%-10.9%-24.3%
Q2 2022+2.7%+0.0%-14.8%
Q1 2022+4.0%-3.3%+2.8%
Q4 2021-0.2%+2.5%-3.5%
Q3 2021-10.6%-11.6%-25.3%
Q2 2021+0.8%-1.6%+0.6%
Q1 2021-4.0%-15.0%-10.1%
Q4 2020+9.9%+6.3%+7.0%
Q3 2020+4.9%+22.3%+52.1%
Q2 2020+18.2%+21.5%+24.9%
Q1 2020+2.5%+15.6%+33.4%
Q4 2019+6.0%+11.5%-4.5%
Q3 2019-11.2%-8.5%-14.7%
Q2 2019+12.0%+11.3%-1.8%
Q1 2019-5.2%-3.6%+0.6%
Q4 2018-9.0%-8.7%-12.1%
Q3 2018-12.3%-11.3%-17.6%
Q2 2018+13.5%+9.3%+10.7%
Q1 2018+1.1%-6.2%+0.7%
Q4 2017-2.7%-2.8%-1.9%
Q3 2017+6.6%+5.8%+6.4%
Q2 2017-5.3%-11.0%-1.4%
Q1 2017+1.1%-2.9%-7.2%
Q4 2016-11.3%-1.9%-6.6%
Q3 2016-6.4%
Q2 2016+15.6%
Q1 2015+41.9%
Q4 2015-14.7%
Q3 2015-2.0%
Q2 2015+17.9%
Q3 2014-3.1%
Q2 2014+3.0%
Q1 2014+1.8%
Q4 2013+10.5%
Q3 2013+6.7%
Q2 2013-4.7%
Q1 2013-12.5%
Q4 2012-10.7%
Q3 2012-1.8%
Q2 2012+2.3%
Q1 2012+0.0%
Q4 2011-6.7%
Q3 2011+5.2%
Q2 2011+10.3%
Q1 2011+4.7%
Q4 2010+1.7%
Q3 2010-0.5%
Q2 2010+2.5%
Q1 2009+0.6%

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