NYSE$MTRN

Materion Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Materion reported strong second-quarter results, driven by above-market revenue growth and margin expansion.

Materion Corporation reported strong second quarter financial results, with net sales of $371.0 million and adjusted earnings of $0.86 per share. The company raised its full-year outlook, expecting continued market strength and a robust organic pipeline.

  • Net sales reached $371.0 million, compared to $271.5 million in the prior year period.
  • Value-added sales increased 31% year-on-year to a record $207.9 million for the quarter.
  • Operating profit was $20.7 million, with adjusted EBIT at $22.1 million, or 10.6% of value-added sales.
  • Adjusted earnings were $0.86 per share, a 91% increase compared to $0.45 in the prior year period.

Headline financials

Total Revenue

$3.2M

Previous: $8.78M-63.6%
EPS (adj)

$0.86

Previous: $0.49+75.5%
Value-added sales

$208M

Previous: $162M+28.7%
Capital Expenditures

-$57.7M

Previous: -$32M-80.2%
Free Cash Flow

-$39.8M

Previous: -$25.4M-57.1%
Net Income

$17.9M

Previous: $6.68M+167.6%
Operating Income

$20.7M

Previous: $8.71M+138.0%
Gross Profit

$69.6M

Previous: $48.1M+44.7%
Cash & Equivalents

$24.3M

Previous: $265M-90.8%
Total Assets

$1.14B

Previous: $1.04B+9.6%
Stock-Based Comp

$2.04M

Previous: $2.47M-17.6%

Revenue & EPS history

Materion · Revenue · Quarterly

$3.2M

Q2 2021-63.6%vs Q2 2020
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

Materion · $371M total across 3 segments · Q2 2021

  • Electronic Materials
    $213M
  • Performance Materials
    $125M+23.3%
  • Precision Optics
    $32.6M+64.6%

Forward guidance

The company expects adjusted earnings per diluted share in the third quarter to be in the range of $0.80 to $0.84. Full-year 2021 adjusted earnings are expected to be $3.25 to $3.45 per diluted share.

Tailwinds

  • Strength in organic pipeline
  • Good underlying demand across end markets
  • Adjusted earnings per diluted share in Q3 expected to increase 64% from Q3 2020 at the midpoint
  • Full-year 2021 adjusted earnings expected to increase 65% from the prior year at the midpoint
  • Continued execution on key strategic initiatives

Headwinds

  • Potential insurance and litigation claims
  • Legacy environmental costs
  • Acquisition and integration costs
  • Certain income tax items
  • Other non-routine costs

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 Q2 2021

Historical avgQ2 2021

+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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