NYSE$THR

Thermon Group Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record Q1 revenue, increased net income, and completed the acquisition of Powerblanket.

Thermon reported a strong start to fiscal year 2023 with record Q1 revenue up 34%, net income up $6.9 million, and adjusted EBITDA growth of 106% compared to Q1 2022. The company also completed the acquisition of Powerblanket and revised its fiscal year 2023 revenue and earnings guidance upwards.

  • Record Q1 revenue increased by 34% year-over-year.
  • Net income increased by $6.9 million compared to Q1 2022.
  • Adjusted EBITDA grew by 106% compared to the same period last year.
  • Completed the acquisition of Powerblanket.

Headline financials

Total Revenue

$95.4M

Previous: $71.2M+34.1%
EPS (adj)

$0.25

Previous: $0.07+257.1%
Adjusted EBITDA

$16.6M

Previous: $9.72M+70.8%
Gross Margin

39.0%

Previous: 39.6%-1.5%
Backlog

$165M

Previous: $116M+42.5%
Capital Expenditures

-$1.62M

Previous: -$873K-85.2%
Free Cash Flow

$4.94M

Previous: -$6K+82416.7%
Net Income

$6.56M

Previous: $867K+656.2%
Operating Income

$11.2M

Previous: $4.61M+143.0%
Gross Profit

$37.2M

Previous: $28.2M+32.1%
Cash & Equivalents

$40M

Previous: $41.1M-2.5%
Total Assets

$662M

Previous: $625M+5.9%
Stock-Based Comp

$1.19M

Previous: $1.18M+1.3%

Revenue & EPS history

Thermon · Revenue · Quarterly

$95.4M

Q1 2023+34.1%vs Q1 2022
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

For the fiscal year ending March 31, 2023, Thermon expects revenue to be approximately $380-$405 million, including $18 million from the Powerblanket acquisition. GAAP EPS is expected to be approximately $0.85-$0.97 per share, with Adjusted EPS to be approximately $1.07-$1.19 per share.

Tailwinds

  • Revenue will be approximately $380-$405 million.
  • Includes $18 million of revenue contribution from the Powerblanket acquisition.
  • GAAP EPS in Fiscal 2023 to be approximately $0.85-$0.97 per share.
  • Adjusted EPS to be approximately $1.07-$1.19 per share.
  • Continue to evaluate additional inorganic growth opportunities while investing in our long-term strategic initiatives.

Headwinds

  • General economic conditions and cyclicality in the markets.
  • Future growth of energy, chemical processing and power generation capital investments.
  • Ability to operate successfully in foreign countries.
  • Ability to successfully develop and improve our products and successfully implement new technologies.
  • Competition from various other sources providing similar heat tracing and process heating products and services, or alternative technologies, to customers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.3%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.7%

Avg return

30 days after

53%

34 / 64 earnings

Positive

+13.3%

Q2 2014

Best reaction

-24.9%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+3.1%+3.6%
Q3 2026+5.6%+8.8%-2.0%
Q2 2026+11.2%+22.2%+33.0%
Q1 2026-11.2%-8.9%-9.5%
Q4 2025-0.5%-6.9%-7.2%
Q3 2025-1.6%+12.9%+5.9%
Q2 2025-3.4%+0.1%+8.6%
Q1 2025-0.2%-3.4%-5.1%
Q4 2024-0.1%-7.7%-11.8%
Q3 2024-24.9%-21.9%-16.1%
Q2 2024+11.2%+14.7%+13.1%
Q1 2024-7.3%-5.3%-0.2%
Q4 2023+1.2%+0.3%+11.2%
Q3 2023+3.7%+13.6%+18.8%
Q2 2023+3.2%+8.4%+17.8%
Q1 2023+4.3%+7.0%+8.7%
Q4 2022+2.5%+1.5%-5.4%
Q3 2022+2.0%+3.3%-0.3%
Q2 2022+0.8%-1.2%-9.3%
Q1 2022+3.8%+2.7%-4.0%
Q4 2021-10.7%-9.0%-6.6%
Q3 2021+1.8%+7.2%+35.8%
Q2 2021+5.7%+25.4%+55.5%
Q1 2021-2.4%+0.4%-11.4%
Q4 2020-11.2%+5.1%-11.5%
Q3 2020-14.7%-13.3%-25.8%
Q2 2020+8.5%+7.5%+4.5%
Q1 2020-7.0%-5.1%-7.3%
Q4 2019+5.9%+7.6%+15.3%
Q3 2019+2.6%+3.3%+13.0%
Q2 2019-0.4%-4.9%-3.4%
Q1 2019+3.4%-0.2%+6.9%
Q4 2018-8.7%-4.8%-3.0%
Q3 2018+3.0%+3.0%+9.3%
Q2 2018+4.4%+3.4%+2.7%
Q1 2018-3.3%-3.3%-7.2%
Q4 2017-13.2%-13.5%-10.1%
Q3 2017-0.5%+1.4%-3.3%
Q2 2017-0.5%+2.0%+6.2%
Q1 2017-5.4%-1.5%-2.5%
Q4 2016+10.7%+9.5%+4.5%
Q3 2016-2.3%
Q2 2016-7.7%
Q1 2016-3.6%
Q4 2015-1.9%
Q3 2015+7.6%
Q2 2015+10.7%
Q1 2015+9.1%
Q4 2014+1.0%
Q3 2014-5.4%
Q2 2014+13.3%
Q1 2014+0.2%
Q1 2011-0.9%
Q4 2013-5.1%
Q3 2013-6.3%
Q2 2013-6.3%
Q1 2013+1.6%
Q4 2012+0.0%
Q3 2011+1.3%
Q3 2012+1.3%
Q2 2011+0.3%
Q2 2012+0.3%
Q4 2011+1.8%
Q1 2012+1.8%
Q4 2010

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