NYSE$MTRN

Materion Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Delivered sequential earnings growth and continued to execute on significant growth opportunities.

Materion Corporation reported third quarter 2020 financial results, with net sales of $287.2 million. Net income was $0.32 per share, diluted, consistent with the second quarter; adjusted earnings were $0.55 per share, up 12% vs. the second quarter. The acquisition of Optics Balzers was completed, and integration activities are progressing as planned.

  • Net sales were $287.2 million compared to $271.5 million in the second quarter; value-added sales increased 4% sequentially to $167.5 million
  • Net income of $0.32 per share, diluted, consistent with the second quarter; adjusted earnings of $0.55 per share, up 12% vs. the second quarter
  • Transformative acquisition of Optics Balzers completed to create a global industry leader in optical thin film coating solutions; integration activities progressing as planned
  • Significant new customer opportunity for precision clad engineered strip product remains on schedule

Headline financials

Total Revenue

$6.6M

Previous: $17.2M-61.5%
EPS (adj)

$0.55

Previous: $0.81-32.1%
Value-added sales

$168M

No prior period
Capital Expenditures

-$46.3M

Previous: -$18.2M-154.4%
Free Cash Flow

-$39.8M

Previous: -$14.7M-170.1%
Net Income

$6.5M

Previous: $3.46M+87.6%
Operating Income

$713K

Previous: $6.29M-88.7%
Gross Profit

$46.6M

Previous: $64.9M-28.2%
Cash & Equivalents

$118M

Previous: $94.5M+24.6%
Total Assets

$1.08B

Previous: $840M+29.2%
Stock-Based Comp

$23K

Previous: $1.69M-98.6%

Revenue & EPS history

Materion · Revenue · Quarterly

$6.6M

Q3 2020-61.5%vs Q3 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

Materion · $122M total across 2 segments · Q3 2020

  • Performance Materials
    $91.2M
  • Precision Optics
    $30.4M

Forward guidance

Based on current demand levels and assuming our factories remain operational, we expect adjusted earnings per diluted share in the fourth quarter to be slightly better than the third quarter.

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 Q3 2020

Historical avgQ3 2020

+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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