NYSE$MLI

Mueller Industries Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Mueller Industries reported an increase in operating income and net income, despite a decrease in net sales compared to the same quarter last year.

Mueller Industries reported Q4 2019 earnings with an increase in operating income to $44.4 million from $40.0 million in Q4 2018. Net income also increased to $28.2 million, or 50 cents per diluted share, compared to $26.9 million, or 47 cents per diluted share, in the prior year. However, net sales saw a slight decrease to $543.8 million from $559.1 million in the same quarter of 2018.

  • Operating income for the fourth quarter increased to $44.4 million compared to $40.0 million in the same quarter of 2018.
  • Net income for the quarter rose to $28.2 million, or 50 cents per diluted share, from $26.9 million, or 47 cents per diluted share, in the prior year.
  • Net sales for the quarter decreased to $543.8 million compared to $559.1 million in the fourth quarter of 2018.
  • The average price of copper was lower compared to the prior year period, impacting net sales for the Piping Systems and Industrial Metals segments.

Headline financials

Total Revenue

$544M

Previous: $559M-2.7%
EPS (adj)

$0.25

Previous: $0.24+4.2%
Net Income

$28.2M

Previous: $26.9M+4.9%
Operating Income

$44.4M

Previous: $40M+11.2%
Gross Profit

$94.4M

Previous: $85.1M+10.8%
Cash & Equivalents

$97.9M

Previous: $72.6M+34.9%
Total Assets

$1.37B

Previous: $1.37B+0.1%
Stock-Based Comp

$2.39M

Previous: $2.08M+14.7%

Revenue & EPS history

Mueller Industries · Revenue · Quarterly

$544M

Q4 2019-2.7%vs Q4 2018
Beat estimate in 3 of 6 quarters(50%)
ActualEstimate

Forward guidance

Mueller Industries anticipates a positive outlook for 2020, supported by cost mitigation initiatives and improved performance in the Piping Systems and Climate businesses, despite softening industrial markets.

Tailwinds

  • Cost mitigation initiatives undertaken in the second half of 2019.
  • Improved performance in Piping Systems and Climate businesses.
  • Solid fundamentals in the building construction sector.
  • Healthy or improving economies in which the company operates.
  • Tecumseh’s operating results improved in the second half of the year.

Headwinds

  • Softening of the industrial markets experienced during the fourth quarter.
  • Potential for bumpy earnings from Tecumseh as it executes its restructuring plan.
  • Economic and currency conditions.
  • Continued availability of raw materials and energy.
  • Market demand, pricing, competitive and technological factors, and the availability of financing.

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 2019

Historical avgQ4 2019

+2.2%

Avg return

Earnings day

+3.6%

Avg return

5 days after

+6.1%

Avg return

30 days after

71%

49 / 69 earnings

Positive

+15.8%

Q2 2022

Best reaction

-12.5%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.3%+12.5%+10.4%
Q4 2025-11.2%-15.3%-16.0%
Q3 2025+4.1%+2.7%+4.2%
Q2 2025+3.1%+1.8%+9.9%
Q1 2025+2.6%+0.4%+6.0%
Q4 2024-2.2%+2.9%+1.9%
Q3 2024+12.4%+13.6%+27.2%
Q2 2024+2.0%+9.0%+7.4%
Q1 2024+8.3%+7.1%+8.8%
Q4 2023+1.5%+2.7%+7.4%
Q3 2023+6.4%+7.8%+16.4%
Q2 2023-10.9%-11.4%-17.2%
Q1 2023+1.5%+3.7%+10.1%
Q4 2022+6.9%+4.6%+7.4%
Q3 2022+3.5%+3.2%+12.8%
Q2 2022+15.8%+14.5%+28.1%
Q1 2022+13.7%+9.3%+0.7%
Q4 2021+6.0%+6.8%+11.5%
Q3 2021+7.9%+13.0%+39.1%
Q2 2021+10.3%+9.5%+12.3%
Q1 2021+0.8%+1.5%+3.0%
Q4 2020+1.0%+4.9%+14.2%
Q3 2020+2.2%+4.2%+12.5%
Q2 2020+5.3%+4.2%+12.5%
Q1 2020+1.4%-0.3%+4.4%
Q4 2019+14.0%+11.4%-7.3%
Q3 2019+5.1%+5.6%+5.0%
Q2 2019+9.4%+11.6%-4.6%
Q1 2019-7.6%-5.6%-11.9%
Q4 2018+15.2%+17.0%+19.4%
Q3 2018-4.7%-2.5%-5.6%
Q2 2018+10.0%+9.5%+12.9%
Q1 2018+0.1%+0.8%+9.1%
Q4 2017-12.5%-14.7%-13.3%
Q3 2017+0.8%-1.4%+2.5%
Q2 2017+2.0%+2.9%-4.1%
Q1 2017-4.2%-6.2%-16.4%
Q4 2016+4.3%+7.3%-3.3%
Q3 2016-3.4%-4.6%+22.3%
Q2 2016+1.4%+0.6%+2.9%
Q1 2016+2.7%
Q4 2015+0.0%
Q3 2015+1.8%
Q2 2015-4.1%
Q1 2015-2.7%
Q4 2014+6.0%
Q3 2014+5.9%
Q2 2014+3.6%
Q1 2014-3.9%
Q4 2013-2.7%
Q3 2013-0.4%
Q2 2013+3.6%
Q1 2013+1.5%
Q4 2012+2.1%
Q3 2012-5.4%
Q2 2012-0.6%
Q1 2012+2.7%
Q4 2011-0.9%
Q3 2011+9.1%
Q2 2011-2.7%
Q1 2011+0.3%
Q1 2010+0.3%
Q2 2010+0.3%
Q4 2010-2.4%
Q4 2008-2.4%
Q3 2010+1.2%
Q3 2009+1.2%
Q2 2009+2.8%
Q4 2009+2.8%

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