NYSE$SXI

Standex International Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported strong organic growth and record consolidated adjusted operating margin.

Standex International Corporation reported strong first quarter performance with 7.3% organic revenue growth and a record consolidated adjusted operating margin of 15.0%. Sales from fast growth markets increased 30% year-over-year to $17 million.

  • GAAP Operating Margin of 14.6% and Record Adjusted Operating Margin of 15.0%, up 110 bps sequentially and 160 bps year on year.
  • 7.3% Organic Revenue Growth Year on Year, Led by Specialty and Engraving Segments.
  • Fast Growth Market Sales Increased ~30% Year on Year to ~$17 Million; Fast Growth Market Sales in Fiscal 2023 Expected to Increase ~35% Versus Prior Year.
  • Expect to Build on Momentum with Continued Improvement in Key Financial Metrics in Fiscal 2023

Headline financials

Total Revenue

$181M

Previous: $176M+2.8%
EPS (adj)

$1.60

Previous: $1.34+19.4%
Net Debt to EBITDA

0.7

No prior period
Free Cash Flow

$18.3M

Previous: $15.8M+15.5%
Net Income

$18.3M

Previous: $15.8M+15.5%
Operating Income

$26.3M

Previous: $22.8M+15.2%
Gross Profit

$68.3M

Previous: $66.2M+3.0%
Cash & Equivalents

$103M

Previous: $131M-20.9%
Total Assets

$921M

Previous: $961M-4.1%

Revenue & EPS history

Standex · Revenue · Quarterly

$181M

Q1 2023+2.8%vs Q1 2022
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Revenue by segment

Standex · $194M total across 5 segments · Q1 2023

  • Electronics
    $81.5M
  • Specialty Solutions
    $37.5M
  • Engraving
    $36.5M
  • Engineering Technologies
    $19.5M
  • Scientific
    $19M

Forward guidance

The Company expects slightly higher revenue and similar operating margin to fiscal first quarter 2023, with flat revenue and moderate to significant improvement in operating margin on a year-over-year basis.

Tailwinds

  • Mid- to high-single-digit organic growth rate.
  • Engineering Technologies Group segment to be the primary revenue driver with a moderate to significant increase compared to fiscal first quarter 2023.
  • Scientific segment revenue is expected to slightly increase.
  • Electronics and Engraving segment revenue is expected to be similar to fiscal first quarter 2023.
  • Operating margin is expected to be similar as volume decline is offset by pricing and productivity actions.

Headwinds

  • Currency impact will largely offset organic growth.
  • Specialty Solutions segment revenue is expected to slightly decline.
  • Electronics segment expects a slight decrease in operating margin, mostly due to mix and higher growth investments, partially offset by continued price actions.
  • Engraving segment expects operating margin to decrease slightly due to project mix.
  • Scientific segment expects slightly lower to similar operating margin, primarily due to R&D investments and higher anticipated spend on advertising and tradeshows

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

+0.0%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+3.6%

Avg return

30 days after

53%

34 / 64 earnings

Positive

+23.5%

Q4 2019

Best reaction

-20.7%

Q3 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-8.7%+0.0%+11.7%
Q2 2026+3.5%+7.7%+3.7%
Q1 2026+0.7%-3.3%+1.0%
Q3 2025+8.9%+5.3%+4.2%
Q2 2025-2.1%+4.9%-0.3%
Q1 2025+5.5%+0.4%+15.7%
Q4 2024-4.7%-9.1%-4.4%
Q3 2024+0.5%-4.2%-3.4%
Q2 2024+1.2%+1.9%+18.8%
Q1 2024-5.6%-5.2%-4.9%
Q4 2023+5.3%+11.4%+4.9%
Q3 2023+4.0%+8.5%+15.9%
Q2 2023-0.5%+1.0%+1.4%
Q1 2023+2.1%-1.0%+7.5%
Q4 2022-1.2%-3.3%-10.6%
Q3 2022-2.9%-5.5%-3.8%
Q2 2022+0.0%+6.9%+8.6%
Q1 2022+3.4%+3.9%-9.8%
Q4 2021+2.2%+3.0%-0.5%
Q3 2021+3.9%+2.5%+1.9%
Q2 2021+0.6%+5.2%+19.6%
Q1 2021+3.0%+12.0%+29.6%
Q4 2020-1.9%+2.1%-0.1%
Q3 2020+7.9%-0.3%+39.8%
Q2 2020-3.8%-4.6%-11.7%
Q1 2020-1.0%+1.1%-1.1%
Q4 2019+23.5%+12.3%+20.7%
Q3 2019-11.5%-6.7%-11.3%
Q2 2019-5.2%-2.4%+4.2%
Q1 2019-15.4%-15.1%-14.8%
Q4 2018-4.8%-5.0%-8.2%
Q3 2018-3.6%-4.2%+2.9%
Q2 2018+4.5%+0.9%-4.8%
Q1 2018+1.2%+0.4%+1.4%
Q4 2017+2.1%+3.9%+16.9%
Q3 2017-3.4%-3.4%-6.7%
Q2 2017+4.8%+2.3%+3.2%
Q1 2017-10.0%-11.3%+6.2%
Q4 2016-8.9%-8.8%-3.6%
Q3 2016+0.9%
Q2 2016-8.4%
Q1 2016+6.2%
Q4 2015+9.6%
Q3 2015-2.8%
Q2 2015-0.3%
Q1 2015+1.4%
Q4 2014+4.1%
Q3 2014+18.0%
Q2 2014-0.3%
Q1 2014+0.8%
Q4 2013-5.8%
Q3 2013-3.4%
Q2 2013-0.9%
Q1 2013+8.5%
Q4 2011-0.7%
Q4 2010-0.7%
Q4 2012+2.9%
Q3 2011+4.2%
Q3 2012+4.2%
Q2 2011+0.3%
Q2 2012+0.3%
Q1 2012-4.0%
Q1 2011-4.0%
Q3 2010-20.7%

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