NYSE$MPTI

M-Tron Industries Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong financial results with net income increasing due to continued strong defense program product and solution shipments.

M-tron Industries reported a strong second quarter with a 16.4% increase in revenues and a 36.6% increase in net income compared to Q2 2023. The company's gross margin also improved, driven by higher revenues, improved production efficiencies, and a shift to higher margin products. Management has raised the outlook for fiscal year 2024, increasing revenues to a range of $46.0 million to $48.0 million.

  • Revenues increased 16.4% to $11,808,000 in Q2 2024 compared to $10,140,000 in Q2 2023, driven by strong defense program shipments.
  • Net income increased 36.6% to $1,744,000 in Q2 2024 compared to $1,277,000 in Q2 2023.
  • Gross margin improved to 46.6% in Q2 2024 compared to 41.6% in Q2 2023, reflecting improved production efficiencies and product mix.
  • Adjusted EBITDA increased 30.7% to $2,523,000 in Q2 2024 compared to $1,931,000 in Q2 2023.

Headline financials

Total Revenue

$11.8M

Previous: $10.1M+16.4%
EPS

$0.63

Previous: $0.47+34.0%
Backlog

$45.3M

No prior period
Gross Margin

46.6%

Previous: 41.6%+12.0%
Capital Expenditures

-$995K

Previous: -$302K-229.5%
Free Cash Flow

$749K

Previous: $975K-23.2%
Net Income

$1.74M

Previous: $1.28M+36.6%
Operating Income

$2.11M

Previous: $1.57M+34.6%
Gross Profit

-$6.31M

Previous: -$5.92M-6.5%
R&D Expense

$682K

No prior period
Stock-Based Comp

$201K

Previous: $140K+43.6%

Revenue & EPS history

M-Tron Industries · Revenue · Quarterly

$11.8M

Q2 2024+16.4%vs Q2 2023
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Forward guidance

MPTI management has raised the outlook for fiscal year 2024, increasing revenues to a range of $46.0 million to $48.0 million. MPTI has good visibility for the remaining two quarters of 2024 and expects EBITDA to continue to be in the 19% to 21% range.

Tailwinds

  • Continued momentum in defense-related sales.
  • Acceleration in production and shipments during the first half of 2024.
  • Good visibility for the remaining two quarters of 2024.
  • EBITDA expected to continue to be in the 19% to 21% range.
  • Strong order backlog trend since listing is positive and anticipated to continue to grow.

Headwinds

  • Actual results may differ materially depending on a number of factors.
  • Uncertain financial impact of COVID-19.
  • Risks and uncertainties described in the filings made by MPTI with the Securities and Exchange Commission.
  • Inaccurate assumptions.
  • Variability of order intake due to the size and timing of large program-related orders.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+3.1%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+12.5%

Avg return

30 days after

62%

13 / 21 earnings

Positive

+27.9%

Q2 2023

Best reaction

-25.9%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-1.0%+0.2%
Q1 2026-0.2%+4.6%+32.8%
Q3 2025-6.5%-11.8%+0.8%
Q2 2025-10.6%-8.0%+1.0%
Q1 2025-15.8%-18.8%-24.0%
Q4 2024+5.3%+9.7%+38.3%
Q3 2024+10.0%+0.0%+11.1%
Q2 2024+9.8%+11.3%+12.9%
Q1 2024+5.8%+4.1%+27.5%
Q4 2023-25.9%-25.1%-31.4%
Q3 2023+9.8%+29.0%+4.9%
Q2 2022+27.9%+26.0%+79.5%
Q2 2023+27.9%+26.0%+79.5%
Q1 2022-1.0%-1.3%-1.3%
Q1 2023-1.0%-1.3%-1.3%
Q4 2022+7.5%+3.0%+17.4%
Q2 2021+7.5%+3.0%+17.4%
Q1 2021+7.5%+3.0%+17.4%
Q4 2021+2.5%-1.5%-10.7%
Q3 2021+2.5%-1.5%-10.7%
Q3 2022+2.5%-1.5%-10.7%

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