NYSE$MTRN

Materion Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Materion's Q1 2024 financial performance was impacted by temporary operational challenges and softer market demand, but strong margins were maintained through cost improvement initiatives.

Materion Corporation reported net sales of $385.3 million and net income of $13.4 million, or $0.64 per share, for the first quarter of 2024. Adjusted earnings were $0.96 per share. The company updated its full-year adjusted earnings outlook to $5.60-$6.20 per share, a 5% increase year over year at the midpoint.

  • Net sales were $385.3 million; value-added sales were $257.8 million.
  • Net income was $13.4 million, or $0.64 per share, diluted, and adjusted earnings of $0.96 per share.
  • Adjusted EBITDA was $45.2 million, or 17.5% of value-added sales.
  • Full year adjusted earnings outlook updated to $5.60-$6.20 per share, a 5% increase year over year at the midpoint.

Headline financials

Total Revenue

$377M

Previous: $442M-14.7%
EPS (adj)

$0.96

Previous: $1.34-28.4%
Capital Expenditures

-$21.3M

Previous: -$30M+29.0%
Free Cash Flow

-$7.91M

Previous: -$4.43M-78.6%
Net Income

$13.4M

Previous: $25.6M-47.6%
Operating Income

$22.2M

Previous: $36.9M-39.8%
Gross Profit

$71.2M

Previous: $91.3M-22.0%
Cash & Equivalents

$13.1M

Previous: $15.2M-14.0%
Total Assets

$1.81B

Previous: $1.72B+5.1%
R&D Expense

$7.14M

No prior period
Stock-Based Comp

$2.5M

Previous: $2.25M+10.9%

Revenue & EPS history

Materion · Revenue · Quarterly

$377M

Q1 2024-14.7%vs Q1 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Materion · $403M total across 3 segments · Q3 2023

  • Electronic Materials
    $192M-16.7%
  • Performance Materials
    $185M+9.0%
  • Precision Optics
    $26.2M-6.4%

Forward guidance

Despite a weaker than anticipated first quarter, we expect to deliver another year of record results as we execute our organic and operational excellence initiatives. Since the beginning of the year, the outlook for the commercial aerospace and electric vehicle end-markets has softened and we expect some inventory correction from our precision clad strip customer in the second half. In addition, we expect higher interest expense with the current rate projections. While we expect to mitigate much of the impact of these items through targeted cost reduction initiatives and performance, we are adjusting our outlook to $5.60 to $6.20 for the full year 2024 adjusted earnings per share, an increase of 5% from prior year at the midpoint.

Tailwinds

  • Expect to deliver another year of record results.
  • Executing organic and operational excellence initiatives.
  • Targeted cost reduction initiatives.
  • Performance improvements.
  • Adjusted earnings per share outlook increased 5% from prior year at the midpoint.

Headwinds

  • Weaker than anticipated first quarter.
  • Softening outlook for commercial aerospace and electric vehicle end-markets.
  • Expected inventory correction from precision clad strip customer in the second half.
  • Expect higher interest expense with the current rate projections.
  • Impact of weaker outlook will be mitigated through targeted cost reduction initiatives and performance.

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 Q1 2024

Historical avgQ1 2024

+2.0%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+3.7%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+26.3%

Q4 2022

Best reaction

-18.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.5%+6.8%+23.9%
Q4 2025+1.2%-2.4%-13.4%
Q3 2025-13.0%-14.5%-8.7%
Q1 2025+1.5%-5.7%-6.7%
Q4 2024+4.0%-6.7%-14.1%
Q3 2024-4.7%-0.5%+8.5%
Q2 2024+6.7%+3.9%-0.2%
Q1 2024-4.5%-6.1%-0.5%
Q4 2023+10.7%+5.7%+4.1%
Q3 2023+9.4%+14.0%+18.9%
Q2 2023-11.2%-8.6%-4.9%
Q1 2023-0.4%-2.4%+2.1%
Q4 2022+26.3%+21.4%+18.8%
Q3 2022-18.8%-14.4%-3.4%
Q2 2022+5.9%+7.8%-0.4%
Q1 2022+8.5%+7.6%+6.2%
Q4 2021+1.6%-4.2%-2.0%
Q3 2021+23.8%+26.9%+16.3%
Q2 2021+2.8%+4.5%+4.2%
Q1 2021+4.8%+9.8%+16.7%
Q4 2020-2.9%-1.0%+0.9%
Q3 2020-3.0%-8.3%+8.5%
Q2 2020-5.8%-7.1%-8.1%
Q1 2020+16.6%+18.5%+19.8%
Q4 2019-9.2%-11.0%-35.1%
Q3 2019-9.1%-6.6%-6.6%
Q2 2019-0.5%-1.7%-8.6%
Q1 2019+21.1%+21.5%+4.0%
Q4 2018+19.8%+19.5%+21.4%
Q3 2018+15.0%+13.9%+4.9%
Q2 2018+6.1%+8.4%+9.9%
Q1 2018-1.7%-2.8%+4.4%
Q4 2017+6.2%+8.0%+15.2%
Q3 2017+16.9%+19.7%+17.6%
Q2 2017+3.3%+1.7%+0.3%
Q1 2017+1.5%-3.5%-2.7%
Q4 2016-7.1%-7.8%-13.2%
Q3 2016+0.7%+1.0%+32.4%
Q2 2016+2.3%+2.4%+13.9%
Q1 2016-1.7%
Q4 2015-2.3%
Q3 2015-5.9%
Q2 2015-9.3%
Q1 2015-2.2%
Q4 2014+2.6%
Q3 2014+24.8%
Q2 2014-9.9%
Q1 2014+1.3%
Q4 2013+6.5%
Q3 2013+0.8%
Q2 2013+3.1%
Q1 2013-5.7%
Q4 2012-2.5%
Q3 2012-2.6%
Q2 2012-2.0%
Q1 2012-2.5%
Q1 2010-3.5%
Q4 2011-3.5%
Q1 2011-3.5%
Q4 2009-3.5%
Q3 2010-1.6%
Q3 2011-1.6%
Q2 2010+7.3%
Q4 2010+7.3%
Q2 2011+7.3%

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