NYSE$NVT

nVent Electric plc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced record sales and strong EPS, and raised full-year guidance.

nVent reported a strong second quarter with record sales of $803 million, a 10% increase year-over-year, and adjusted EPS of $0.77, up 35%. The company raised its full-year reported sales and adjusted EPS guidance due to the strong first half performance and recent acquisitions.

  • Reported sales of $803 million, up 10%, organically up 4%.
  • Reported EPS of $0.67, up 40%; Adjusted EPS of $0.77, up 35%.
  • Cash Flows from Operations of $77 million, up 34%; Free Cash Flow of $62 million, up 29%.
  • Raising full-year reported sales and adjusted EPS guidance.

Headline financials

Total Revenue

$803M

Previous: $728M+10.4%
EPS (adj)

$0.77

Previous: $0.57+35.1%
Capital Expenditures

-$32.3M

Previous: -$20.8M-55.3%
Free Cash Flow

$80.6M

Previous: $59.1M+36.4%
Net Income

$113M

Previous: $79.9M+41.3%
Operating Income

$147M

Previous: $105M+40.1%
Gross Profit

$332M

Previous: $268M+23.9%
Cash & Equivalents

$139M

Previous: $55.8M+148.2%
Total Assets

$5.92B

Previous: $4.77B+24.3%
Stock-Based Comp

$5.7M

No prior period

Revenue & EPS history

nVent · Revenue · Quarterly

$803M

Q2 2023+10.4%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The company estimates reported sales for the third quarter of 2023 to be up 16% to 18%, which represents an increase of 1% to 3% on an organic basis. The company estimates third quarter 2023 EPS on a GAAP basis of $0.54 to $0.56 and adjusted EPS of $0.72 to $0.74.

Tailwinds

  • Full-year reported sales growth of 13% to 15%
  • Organic sales growth of 4% to 6%
  • Full-year 2023 EPS of $2.30 to $2.36 on a GAAP basis
  • Adjusted EPS of $2.85 to $2.91
  • Third quarter 2023 EPS on a GAAP basis of $0.54 to $0.56 and adjusted EPS of $0.72 to $0.74

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 2023

Historical avgQ2 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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