NYSE$SPXC

SPX Technologies Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

SPX's second quarter results positioned the company well to deliver significant full-year earnings growth.

SPX Corporation reported Q2 2021 revenue of $296.7 million and operating income of $12.9 million. GAAP EPS was $0.32 and adjusted EPS was $0.49. The company is updating its full-year guidance to adjusted EPS in a range of $2.25-$2.45 and is on track for 'SPX 2025' targets.

  • HVAC segment delivered another strong quarter.
  • Strong bookings and backlog across a number of Detection & Measurement businesses.
  • Balance sheet remains solid, providing significant investment capacity for future growth.
  • Company announced an agreement to sell its Transformer Solutions business and laid out a strategy to accelerate growth and further enhance margin profile.

Headline financials

Total Revenue

$297M

Previous: $373M-20.5%
EPS (adj)

$0.49

Previous: $0.64-23.4%
HVAC Organic Growth

14.1%

Previous: -8.9%+258.4%
D&M Organic Growth

1.6%

Previous: -8.9%+118.0%
Free Cash Flow

$61.5M

Previous: $27.1M+126.9%
Net Income

$61.5M

Previous: $27.1M+126.9%
Operating Income

$12.9M

Previous: $34.4M-62.5%
Gross Profit

$102M

Previous: $114M-10.5%
Cash & Equivalents

$69.1M

Previous: $190M-63.7%
Total Assets

$2.41B

Previous: $2.26B+6.8%
Stock-Based Comp

$3.4M

Previous: $3.3M+3.0%

Revenue & EPS history

SPX · Revenue · Quarterly

$297M

Q2 2021-20.5%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

SPX · $297M total across 2 segments · Q2 2021

  • HVAC
    $185M+40.1%
  • Detection & Measurement
    $111M+20.7%

Forward guidance

SPX is updating its 2021 guidance for an anticipated stronger full-year performance and for the acquisition of ECS. SPX now anticipates Adjusted earnings per share in a range of $2.25 to $2.45. The company continues to anticipate 2021 adjusted revenue of approximately $1.25 billion, and adjusted operating income margin of 11-12%.

Tailwinds

  • HVAC revenue ~$770-780 million
  • HVAC segment income margin ~14.5%
  • Detection & Measurement revenue ~$465-475 million
  • Detection & Measurement segment income margin ~20.5%
  • Total SPX Adjusted revenue ~$1.25 billion

Headwinds

  • Total SPX Adjusted segment income margin ~17.0%
  • impact of the COVID-19 pandemic and governmental and other actions taken in response
  • the uncertainty of claims resolution with respect to the large power projects in South Africa, as well as claims with respect to asbestos, environmental and other contingent liabilities
  • cyclical changes and specific industry events in the company’s markets
  • changes in anticipated capital investment and maintenance expenditures by customers

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

+1.7%

Avg return

Earnings day

+3.2%

Avg return

5 days after

+4.2%

Avg return

30 days after

64%

46 / 72 earnings

Positive

+18.8%

Q1 2023

Best reaction

-17.9%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.6%-1.7%+2.4%
Q4 2025-6.1%-7.4%-17.7%
Q3 2025+7.7%+12.2%+8.1%
Q1 2025+5.2%+10.1%+11.3%
Q4 2024+10.9%+1.7%-5.1%
Q3 2024-9.9%-7.1%+10.8%
Q2 2024-2.0%-1.6%+10.6%
Q1 2024+7.5%+11.8%+14.5%
Q4 2023-0.9%+4.2%+9.1%
Q3 2023+1.9%+4.1%+8.1%
Q2 2023+5.1%-0.8%-5.1%
Q1 2023+18.8%+17.8%+31.6%
Q4 2022-0.8%-2.7%-7.8%
Q3 2022+6.2%+9.9%+10.0%
Q2 2022+4.7%+4.0%+4.5%
Q1 2022+3.6%+2.5%+18.4%
Q4 2021-4.2%-1.8%-5.3%
Q3 2021+0.9%+8.3%-3.5%
Q2 2021+1.1%-0.4%-4.7%
Q1 2021+4.6%+3.4%+2.6%
Q4 2020+1.3%-2.4%+1.0%
Q3 2020-3.1%-1.1%+20.9%
Q2 2020-0.5%-0.8%-0.3%
Q1 2020-11.7%-11.1%-2.7%
Q4 2019+0.4%-0.0%-29.4%
Q3 2019+7.1%+10.7%+12.4%
Q2 2019+4.9%+3.3%+8.7%
Q1 2019-1.4%-5.4%-17.5%
Q4 2018+11.9%+17.1%+9.6%
Q3 2018-2.9%-1.7%+0.9%
Q2 2018-0.7%-0.4%-7.5%
Q1 2018-0.9%+2.5%+6.9%
Q4 2017+1.5%+6.3%+3.1%
Q3 2017+9.8%+7.9%+10.2%
Q2 2017-3.7%-5.9%-11.9%
Q1 2017+17.3%+13.5%+4.9%
Q4 2016+7.5%+5.4%-6.7%
Q3 2016+0.2%+2.1%+35.7%
Q2 2016+17.5%+18.5%+32.5%
Q1 2016+4.9%
Q4 2015+13.9%
Q3 2015-5.1%
Q2 2015+3.3%
Q1 2015+1.2%
Q4 2014+1.4%
Q3 2014-2.3%
Q2 2014-4.2%
Q1 2014+1.6%
Q4 2013+1.3%
Q3 2013+4.7%
Q2 2013+4.7%
Q1 2013-2.0%
Q4 2012+0.3%
Q3 2012+4.5%
Q2 2012-2.9%
Q1 2012+0.9%
Q4 2011-0.4%
Q3 2011+14.6%
Q2 2011-17.9%
Q1 2011+0.1%
Q4 2010-6.8%
Q3 2010-2.2%
Q2 2010+2.8%
Q1 2009-4.2%
Q1 2010+1.0%
Q4 2009+2.6%
Q4 2007+2.6%
Q3 2009-8.9%
Q3 2008-8.9%
Q2 2009+2.0%
Q4 2008+2.0%
Q2 2008+2.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro