NYSE$NVT

nVent Electric plc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported record sales, earnings, and cash flow performance.

nVent announced strong fourth quarter performance with double-digit sales growth and margin expansion across all segments, contributing to record sales, margins, and cash flow for the full year. The company is optimistic about future growth, driven by electrification, sustainability, digitalization, AI acceleration and strategic acquisitions.

  • Fourth quarter reported sales were $861 million, up 16%; Organically up 2%.
  • Fourth quarter reported EPS was $1.51, up 61%; Adjusted EPS was $0.78, up 18%.
  • Full-year Cash Flows from Operations were $528 million; Free Cash Flow was $465 million.
  • The company issued full-year 2024 guidance: Reported sales growth of 8% to 10%; Organic sales growth of 3% to 5%.

Headline financials

Total Revenue

$861M

Previous: $742M+16.1%
EPS (adj)

$0.78

Previous: $0.66+18.2%
Adjusted ROS

22.0%

No prior period
Capital Expenditures

-$22.1M

Previous: $15.1M-246.4%
Net Income

$255M

Previous: $159M+60.6%
Operating Income

$160M

Previous: $125M+28.0%
Gross Profit

$354M

Previous: $292M+21.3%
R&D Expense

$19M

No prior period
Stock-Based Comp

$6M

Previous: $7.2M-16.7%

Revenue & EPS history

nVent · Revenue · Quarterly

$861M

Q4 2023+16.1%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The company introduces 2024 sales guidance of up 8 to 10 percent, which represents a range of a 3 to 5 percent increase in organic sales versus the prior year. The company expects full-year 2024 EPS on a GAAP basis of $2.73 to $2.83 and $3.17 to $3.27 on an adjusted basis, which both include an approximate $0.11 negative impact due to changes in global tax standards.

Tailwinds

  • Reported sales growth of 8% to 10%.
  • Organic sales growth of 3% to 5%.
  • Full-year 2024 EPS on a GAAP basis of $2.73 to $2.83
  • Adjusted EPS of $3.17 to $3.27
  • First quarter 2024 EPS on a GAAP basis of $0.61 to $0.63 and adjusted EPS of $0.72 to $0.74

Headwinds

  • Both EPS include an approximate $0.11 negative impact due to changes in global tax standards.
  • The company estimates first quarter 2024 EPS on a GAAP basis of $0.61 to $0.63
  • Adjusted EPS of $0.72 to $0.74
  • Both include an approximate $0.03 negative impact due to changes in global tax standards.
  • First quarter 2024 to be in the range of up 16 to 18 percent, which represents a 2 to 4 percent increase on an organic basis.

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 Q4 2023

Historical avgQ4 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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