NYSE$MG

Mistras Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported sequential quarterly revenue growth and year-over-year gross profit margin increase, alongside continued positive operating cash flow and debt reduction.

MISTRAS Group reported a decrease in revenue compared to the previous year, but saw sequential quarterly revenue growth. The company also experienced an increase in gross profit margin and a decrease in SG&A expenses. They remained operating and free cash flow positive.

  • Revenue decreased 23.0% year over year, but increased 18.9% sequentially.
  • Gross profit margin increased by 190 basis points to 32.0%.
  • SG&A expenses decreased by $5.2 million, or 12.3%.
  • Net income was $1.6 million, or $0.05 per share.

Headline financials

Total Revenue

$148M

Previous: $192M-23.0%
EPS (adj)

$0.06

Previous: $0.12-50.0%
Adjusted EBITDA

$17.4M

Previous: $22.4M-22.3%
Capital Expenditures

-$10.7M

Previous: -$17.3M+38.2%
Free Cash Flow

-$9.15M

Previous: -$14.2M+35.5%
Net Income

$1.52M

Previous: $3.09M-50.8%
Operating Income

$5.74M

Previous: $10.8M-46.7%
Gross Profit

$47.4M

Previous: $57.8M-18.0%
Cash & Equivalents

$22.1M

Previous: $14.4M+53.9%
Total Assets

$581M

Previous: $728M-20.2%

Revenue & EPS history

Mistras · Revenue · Quarterly

$148M

Q3 2020-23%vs Q3 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Mistras · $30.4M total across 2 segments · Q3 2020

  • International
    $26.5M-28.5%
  • Products and Systems
    $3.93M-28.8%

Forward guidance

Fourth quarter consolidated revenue will be relatively flat to slightly down from the third quarter, adjusted EBITDA will be lower than the third quarter, while operating and free cash flow are expected to be higher than the third quarter.

Tailwinds

  • Operating cash flow are expected to be higher than the third quarter.
  • Free cash flow are expected to be higher than the third quarter.

Headwinds

  • Ongoing COVID-19 pandemic continues to significantly impact the Company’s two largest markets, Oil & Gas and Aerospace.
  • Oil & Gas industry appears to be signaling a flattening for the fourth quarter
  • Aerospace is also facing strong headwinds.
  • Fourth quarter consolidated revenue will be relatively flat to slightly down from the third quarter
  • Adjusted EBITDA will be lower than the third quarter

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 2020

Historical avgQ3 2020

+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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