NYSE$MSA

MSA Safety Incorporated · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

MSA Safety reported record quarterly sales and strong operating performance driven by strength across product portfolio and healthy customer demand.

MSA Safety Incorporated reported record net sales of $443 million for the fourth quarter of 2022, an increase of 8% on a reported basis and 11% on a constant currency basis. GAAP operating income was $71 million, or 15.9% of sales, and adjusted operating income was $96 million, or 21.6% of sales. The company recorded GAAP earnings of $51 million or $1.31 per diluted share and adjusted earnings of $71 million or $1.80 per diluted share.

  • Delivered record net sales of $443 million, an increase of 8% on a reported basis and 11% on a constant currency basis.
  • Generated GAAP operating income of $71 million, or 15.9% of sales, and adjusted operating income of $96 million, or 21.6% of sales.
  • Recorded GAAP earnings of $51 million or $1.31 per diluted share and adjusted earnings of $71 million or $1.80 per diluted share.
  • Achieved operating cash flow of $54 million. Free cash flow was $40 million, representing 77% of net income.

Headline financials

Total Revenue

$443M

Previous: $410M+8.0%
EPS (adj)

$1.80

Previous: $1.67+7.8%
Operating Margin

15.9%

No prior period
Adjusted Operating Margin

21.6%

No prior period
Adjusted EBITDA

$108M

No prior period
Free Cash Flow Conversion

77.0%

No prior period
Capital Expenditures

$13.8M

Previous: $12.9M+7.2%
Free Cash Flow

$40M

Previous: $56.1M-28.7%
Net Income

$51M

Previous: -$59M+186.4%
Operating Income

$71M

Previous: -$85.3M+183.3%
Gross Profit

$197M

Previous: $182M+8.6%
Cash & Equivalents

$163M

Previous: $141M+15.6%
Total Assets

$2.38B

Previous: $2.4B-0.8%
Stock-Based Comp

$8.33M

Previous: $5.35M+55.7%

Revenue & EPS history

MSA · Revenue · Quarterly

$443M

Q4 2022+8%vs Q4 2021
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

The company expects to deliver full year growth in the mid-single digits, healthy incremental margins and robust cash flow conversion in 2023.

Tailwinds

  • Strong momentum entering 2023.
  • Continued demand and growth opportunities across markets.
  • Resilient business due to strategic portfolio composition.
  • Diverse end markets and geographies.
  • Elevated backlog could help cushion an economic slowdown.

Headwinds

  • Operating environment expected to remain challenging as we progress through 2023.

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 2022

Historical avgQ4 2022

+1.4%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+0.8%

Avg return

30 days after

62%

42 / 68 earnings

Positive

+11.8%

Q1 2017

Best reaction

-8.5%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%+3.0%-2.1%
Q4 2025+3.2%+2.7%-9.9%
Q3 2025+4.0%-4.1%-0.9%
Q1 2025+2.0%+0.9%+5.6%
Q4 2024+0.2%-2.0%-7.7%
Q3 2024-1.5%-1.4%+3.3%
Q2 2024-1.7%-3.4%-9.3%
Q1 2024-4.4%-2.6%-5.4%
Q4 2023+1.7%+1.9%+4.6%
Q3 2023+7.6%+6.5%+12.3%
Q2 2023+7.8%+5.6%+8.9%
Q1 2023+2.1%+3.4%+6.0%
Q4 2022+2.1%+2.7%-5.4%
Q3 2022+11.0%+13.4%+20.0%
Q2 2022-4.5%-0.6%-5.8%
Q1 2022+0.0%-2.4%+6.4%
Q4 2021+0.9%-0.5%-1.7%
Q3 2021-0.9%-4.1%-2.7%
Q2 2021+1.3%-0.4%-1.6%
Q1 2021+1.0%+2.1%+5.9%
Q4 2020-0.5%+0.2%-6.6%
Q3 2020-6.0%-3.0%+6.6%
Q2 2020+1.7%+2.3%+6.5%
Q1 2020+8.0%+8.2%+14.1%
Q4 2019-5.7%-7.9%-31.0%
Q3 2019-1.5%+3.5%+7.9%
Q2 2019-3.9%-3.2%-8.9%
Q1 2019-2.1%+2.0%-3.7%
Q4 2018+3.7%+2.4%-1.6%
Q3 2018+9.9%+7.8%+8.7%
Q2 2018+0.1%+0.9%+1.7%
Q1 2018-1.1%-2.5%+2.1%
Q4 2017+3.4%+7.7%+4.6%
Q3 2017+2.2%+0.6%-1.8%
Q2 2017-7.5%-9.4%-8.1%
Q1 2017+11.8%+7.6%+9.6%
Q4 2016+1.3%+3.5%-1.5%
Q3 2016-0.5%+2.0%+13.9%
Q2 2016-0.2%-2.9%-0.4%
Q1 2016-4.1%
Q4 2015+0.7%
Q3 2015-6.3%
Q2 2015+11.5%
Q1 2015-4.0%
Q4 2014+7.4%
Q3 2014-1.9%
Q2 2014-1.5%
Q1 2014-0.7%
Q4 2013+8.7%
Q3 2013-8.5%
Q2 2013+6.0%
Q1 2013-5.1%
Q4 2012+10.7%
Q3 2012+4.3%
Q2 2012+0.5%
Q1 2012+0.8%
Q4 2011+2.2%
Q3 2011+10.6%
Q2 2011+3.7%
Q1 2010+9.8%
Q1 2011+2.2%
Q4 2010-3.7%
Q4 2008-3.7%
Q3 2010+4.5%
Q3 2009+4.5%
Q2 2009+0.8%
Q4 2009+0.8%
Q2 2010+0.8%

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