NYSE$NVT

nVent Electric plc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Announced first quarter 2023 financial results with continued strong performance and raised full-year guidance.

nVent had a strong start to the year with impressive margin expansion and robust cash flow. The company saw growth in all verticals and new products continued to be a strong contributor. Based on the strength of the business in the first quarter, the company is raising full-year guidance.

  • Reported sales of $741 million, up 7%; Organically up 8%
  • Reported EPS of $0.56, up 40%; Adjusted EPS of $0.67, up 34%
  • Cash Flows from Operations of $69 million; Free Cash Flow of $52 million
  • Raising full-year sales and EPS guidance

Headline financials

Total Revenue

$741M

Previous: $695M+6.6%
EPS (adj)

$0.67

Previous: $0.50+34.0%
Adjusted ROS

20.0%

Previous: 15.9%+25.8%
Capital Expenditures

-$17.1M

Previous: -$11.1M-54.1%
Free Cash Flow

$76.7M

Previous: $56.7M+35.3%
Net Income

$93.8M

Previous: $67.8M+38.3%
Operating Income

$124M

Previous: $90.1M+37.7%
Gross Profit

$303M

Previous: $247M+22.6%
Cash & Equivalents

$303M

Previous: $51.1M+493.2%
Total Assets

$4.92B

Previous: $4.7B+4.5%
Stock-Based Comp

$5.7M

No prior period

Revenue & EPS history

nVent · Revenue · Quarterly

$741M

Q1 2023+6.6%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The company now estimates reported sales growth for the full-year 2023 of up 4% to 6% versus prior guidance of 3% to 5%. The organic sales growth guidance range of 4% to 6% is unchanged. The company now expects full-year 2023 EPS of $2.27 to $2.35 on a GAAP basis and adjusted EPS of $2.65 to $2.73 versus prior guidance of $2.16 to $2.26 on a GAAP basis and adjusted EPS of $2.51 to $2.61.

Tailwinds

  • Reported sales growth of 4% to 6% expected for full year 2023
  • Organic sales growth of 4% to 6% expected for full year 2023
  • Full-year 2023 EPS of $2.27 to $2.35 expected on a GAAP basis
  • Adjusted EPS of $2.65 to $2.73 expected for full-year 2023
  • Reported and organic sales for the second quarter of 2023 to be up 3% to 5%

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 2023

Historical avgQ1 2023

+2.4%

Avg return

Earnings day

+3.9%

Avg return

5 days after

+6.4%

Avg return

30 days after

64%

23 / 36 earnings

Positive

+12.4%

Q3 2018

Best reaction

-13.0%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.3%+20.7%+16.8%
Q4 2025-1.1%-1.0%-6.9%
Q3 2025+7.6%+7.8%+2.8%
Q1 2025+5.7%+6.7%+16.7%
Q4 2024+3.5%+5.6%-13.4%
Q3 2024-7.8%+3.4%+5.0%
Q2 2024-3.0%+1.8%-0.7%
Q1 2024+6.3%+11.2%+13.2%
Q4 2023+1.5%+1.7%+10.8%
Q3 2023+1.9%+5.4%+15.6%
Q2 2023+1.1%+7.3%+1.6%
Q1 2023-2.6%-3.1%+2.1%
Q4 2022+10.5%+10.2%+11.1%
Q3 2022+6.6%+6.0%+17.3%
Q2 2022+2.5%+0.5%-2.8%
Q1 2022-0.7%+2.3%+3.9%
Q4 2021+4.1%-1.9%-0.3%
Q3 2021+9.8%+14.6%+12.3%
Q2 2021+5.2%+5.3%+8.3%
Q1 2021+0.4%+2.2%+7.3%
Q4 2020-4.9%-3.0%+18.2%
Q3 2020+4.2%+2.4%+30.5%
Q2 2020-0.1%-0.6%+6.0%
Q1 2020-2.3%-9.3%-4.0%
Q4 2019+6.3%+5.7%-10.9%
Q3 2019+5.4%+10.6%+12.9%
Q2 2019-13.0%-15.1%-18.3%
Q1 2019-3.3%-1.6%-15.5%
Q4 2018-0.2%+0.4%+11.1%
Q4 2017+12.4%+12.8%+18.4%
Q3 2017+12.4%+12.8%+18.4%
Q3 2018+12.4%+12.8%+18.4%
Q2 2017+0.3%+2.1%+4.3%
Q2 2018+0.3%+2.1%+4.3%
Q1 2018-3.4%+1.0%+8.4%
Q1 2017-3.4%+1.0%+8.4%
Q4 2016

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