NYSE$SXI

Standex International Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported financial results for the second quarter of fiscal year 2023, achieving record GAAP operating margin and adjusted operating margin, driven by organic revenue growth and productivity actions.

Standex International Corporation reported strong second-quarter fiscal 2023 results, exceeding expectations with 5.5% organic revenue growth, a record gross margin of 38.5%, and a record adjusted operating margin of 15.2%. The company generated $24 million in free cash flow and announced the sale of its Procon business unit.

  • Achieved record GAAP operating margin of 14.8% and record adjusted operating margin of 15.2%, up 20 bps sequentially and 160 bps year-on-year.
  • Realized 5.5% organic revenue growth year-on-year, with three of the five business segments achieving >10% organic growth.
  • Increased fast growth market sales by approximately 35% year-on-year to approximately $19 million.
  • Generated $24 million in free cash flow, representing a conversion of approximately 120% of GAAP net income.

Headline financials

Total Revenue

$188M

Previous: $186M+1.1%
EPS (adj)

$1.74

Previous: $1.45+20.0%
Net Debt to EBITDA

0.6

No prior period
Operating Margin (Adj.)

15.2%

No prior period
Free Cash Flow

$20M

Previous: $15M+33.8%
Net Income

$20M

Previous: $15M+33.8%
Operating Income

$27.8M

Previous: $21.8M+27.7%
Gross Profit

$72.3M

Previous: $68.8M+5.2%
Cash & Equivalents

$113M

Previous: $147M-22.9%
Total Assets

$957M

Previous: $971M-1.4%

Revenue & EPS history

Standex · Revenue · Quarterly

$188M

Q2 2023+1.1%vs Q2 2022
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Revenue by segment

Standex · $166M total across 5 segments · Q2 2023

  • Electronics
    $61.6M
  • Engraving
    $31.6M
  • Specialty Solutions
    $28M
  • Engineering Technologies
    $24.3M
  • Scientific
    $20.1M

Forward guidance

The Company expects a slight to moderate revenue decrease primarily due to unfavorable foreign exchange and the impact of the Procon divestiture. The Company expects slightly lower to similar adjusted operating margin, on a sequential basis, as price and productivity actions mostly offset the impact of a sales decrease. The Company expects higher adjusted operating margin compared to the same period a year ago.

Tailwinds

  • Strong demand across end markets in North America.
  • Increased sales into fast growth markets.
  • Ongoing pricing and productivity actions in the remaining businesses.
  • Expects higher adjusted operating margin compared to the same period a year ago.
  • Productivity actions and lower freight cost offset volume decline.

Headwinds

  • Slight to moderate revenue decrease primarily due to unfavorable foreign exchange and the impact of the Procon divestiture.
  • Slightly lower to similar operating margin, on a sequential basis, due to unfavorable product mix and plant moves in China and Germany.
  • Revenue to decrease slightly and operating margin to decrease moderately due to unfavorable project mix.
  • Significant decrease in revenue reflecting timing of projects and a slight decrease in operating margin, as productivity actions mostly offset volume decline.
  • Revenue to decline moderately to significantly due to the Procon divestiture.

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

+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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