NYSE$MG

Mistras Group Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Top-line growth recovered, and bottom-line performance significantly improved with revenue up by 18%, operating income expanded by 61%, and net income increased by 122%.

MISTRAS Group, Inc. reported strong third-quarter results with revenue growth of 18% and significant improvements in operating and net income. The company's proprietary technologies, OneSuite™ and Sensoria™, are gaining traction.

  • Revenue increased by 18.0% to $174.6 million.
  • Gross profit increased by 10.2% to $52.2 million, with a gross profit margin of 29.9%.
  • Operating income increased by 60.8% to $9.2 million.
  • Net income increased by 122% to $3.4 million, or $0.11 per diluted share.

Headline financials

Total Revenue

$175M

Previous: $148M+18.0%
EPS (adj)

$0.12

Previous: $0.06+100.0%
Adjusted EBITDA

$18.8M

Previous: $17.4M+8.3%
Capital Expenditures

-$15.1M

Previous: -$10.7M-41.7%
Free Cash Flow

-$11.8M

Previous: -$9.15M-28.4%
Net Income

$3.38M

Previous: $1.52M+121.9%
Operating Income

$9.24M

Previous: $5.74M+60.8%
Gross Profit

$52.2M

Previous: $47.4M+10.2%
Cash & Equivalents

$22.6M

Previous: $22.1M+2.2%
Total Assets

$587M

Previous: $581M+1.1%

Revenue & EPS history

Mistras · Revenue · Quarterly

$175M

Q3 2021+18%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Mistras · $32.4M total across 2 segments · Q3 2021

  • International
    $29.1M+9.9%
  • Products and Systems
    $3.31M-15.9%

Forward guidance

For the fourth quarter of 2021, the Company expects revenue to be flat with the prior year quarter, primarily due to the energy markets’ immediate focus on peak uptime and a lagging commercial aerospace recovery. Adjusted EBITDA is expected to contract modestly in the fourth quarter of 2021.

Tailwinds

  • Continuing stabilization in crude oil markets
  • Ongoing effectiveness of COVID-19 vaccination and booster rollout
  • No significant global supply chain disruptions or labor shortages

Headwinds

  • Ongoing COVID-19 pandemic continues to impact the Company
  • Effect is most pronounced on the Company’s second largest market Aerospace and Defense, especially in the commercial sector
  • Energy markets’ immediate focus on peak uptime
  • Lagging commercial aerospace recovery
  • Substantially all of the remaining temporary cost reductions initiated in 2020 having been fully reversed during the third quarter of 2021, and a lower level of Canadian wage subsidies in 2021 versus 2020.

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 2021

Historical avgQ3 2021

+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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