NYSE$THR

Thermon Group Holdings Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported a decrease in revenue and EPS compared to the same quarter last year, but showed strong free cash flow generation.

Thermon reported Q3 2020 results with a decrease in revenue by 16% to $100.5 million compared to Q3 2019. GAAP EPS decreased to $0.20 from $0.29, and adjusted EPS decreased to $0.28 from $0.40. The company generated $19.9 million in free cash flow and expects fiscal year 2020 revenues to be in the range of $383-390 million.

  • Revenue decreased by 16% to $100.5 million compared to Q3 2019.
  • GAAP EPS decreased to $0.20 from $0.29 year-over-year.
  • Adjusted EPS decreased to $0.28 from $0.40 year-over-year.
  • Generated $19.9 million of free cash flow in the quarter.

Headline financials

Total Revenue

$100M

Previous: $119M-15.8%
EPS (adj)

$0.28

Previous: $0.40-30.0%
New Orders

$99M

Previous: $106M-6.3%
Gross Margin

43.3%

Previous: 42.6%+1.6%
Backlog

$103M

Previous: $136M-24.6%
Capital Expenditures

-$2.86M

Previous: -$8.81M+67.5%
Free Cash Flow

$3.66M

Previous: $909K+302.6%
Net Income

$6.52M

Previous: $9.72M-32.9%
Operating Income

$12.5M

Previous: $17.9M-30.3%
Gross Profit

$43.5M

Previous: $50.9M-14.5%
Cash & Equivalents

$37.1M

Previous: $30.2M+22.7%
Total Assets

$647M

Previous: $654M-1.1%
Stock-Based Comp

$1.33M

Previous: $1.04M+27.6%

Revenue & EPS history

Thermon · Revenue · Quarterly

$100M

Q3 2020-15.8%vs Q3 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

The company reduces fiscal year 2020 revenue guidance to $383-390 million.

Tailwinds

  • Prioritize capital allocation towards additional debt reduction
  • Potential M&A opportunities
  • Continue to see strength in our pipeline of opportunities
  • Continue strong free cash flow generation
  • Net debt to trailing twelve month Adjusted EBITDA ratio currently below 2.0x

Headwinds

  • Weaker capital projects in the second half of the fiscal year
  • Results fell below expectations on weaker year-end discretionary spending during the third quarter
  • Lower incoming order rates in the last two quarters
  • Reducing Fiscal 2020 revenue guidance to $383-390 million
  • Revenue of $100.5 million, a decrease of 16% compared to $119.4 million

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 Q3 2020

Historical avgQ3 2020

-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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