NYSE$SPXC

SPX Technologies Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

SPX Corporation had a strong second quarter, driven by robust project deliveries in Detection & Measurement and overall strength across end markets.

SPX Corporation reported strong Q2 results with revenue growth driven by both HVAC and Detection & Measurement segments. Adjusted operating income increased by 47%, and margin increased by 220 basis points. The company raised its full-year adjusted EPS guidance to reflect the strong Q2 results, outlook for the second half, and impact of stock repurchases.

  • HVAC and Detection & Measurement segments generated strong organic and acquisition revenue growth.
  • Total adjusted operating income grew 47%, with margin up 220 basis points.
  • The company plans to implement a new holding company structure to better align legal entities with business objectives.
  • Adjusted EPS guidance for the full year was raised to reflect strong Q2 results and outlook.

Headline financials

Total Revenue

$354M

Previous: $297M+19.3%
EPS (adj)

$0.71

Previous: $0.49+44.9%
Free Cash Flow

$13M

Previous: $61.5M-78.9%
Net Income

$13M

Previous: $61.5M-78.9%
Operating Income

$27.2M

Previous: $12.9M+110.9%
Gross Profit

$125M

Previous: $102M+22.2%
Cash & Equivalents

$190M

Previous: $69.1M+174.7%
Total Assets

$2.49B

Previous: $2.41B+3.3%
Stock-Based Comp

$2.5M

Previous: $3.4M-26.5%

Revenue & EPS history

SPX · Revenue · Quarterly

$354M

Q2 2022+19.3%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

SPX · $455M total across 2 segments · Q2 2022

  • HVAC
    $249M+34.4%
  • Detection & Measurement
    $206M+85.3%

Forward guidance

SPX Corporation increased its full-year 2022 guidance to reflect the strength of Q2 results and solid second-half demand. The company now anticipates higher full-year revenue in both HVAC and Detection & Measurement, and it has increased its midpoint adjusted EPS guidance to a range of $2.70 to $2.85.

Tailwinds

  • HVAC: Expect Q3 results to be similar to Q2 with a significant increase in Q4.
  • HVAC: Expect full year margin of approximately 14% due to continued supply challenges, partially offset by higher pricing.
  • Detection & Measurement: anticipate second half results to reflect continued strength with Q3 being similar to Q2 results, followed by an even stronger Q4.
  • Detection & Measurement: Continue to expect full year margin in the 19% to 21% range.
  • The company anticipates the bulk of its cash generation in this year is coming in the second half.

Headwinds

  • HVAC: Continued supply challenges.
  • HVAC: Labor challenges in Olathe plant and Bennettsville facility.
  • Modestly higher corporate costs in Q3.
  • Higher tax rate in Q3.
  • Risk areas in supply chain.

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 2022

Historical avgQ2 2022

+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%

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