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Barnes Group's Q3 Earnings Miss Estimates, Sales Rise Y/Y
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Barnes Group Inc. (B - Free Report) reported adjusted earnings of 9 cents per share in third-quarter 2024, which missed the Zacks Consensus Estimate of 39 cents. The metric decreased 52% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Inside the Headlines
Total sales of $388 million beat the Zacks Consensus Estimate of $373 million. The top line increased 7% year over year, with organic sales growth of 4%.
Barnes Group reports sales under two heads, namely Industrial and Aerospace. A brief snapshot of segmental sales is provided below:
Sales from the Industrial segment amounted to $156 million, down 24% year over year. Organic sales were up 1% year over year. Our estimate for segmental sales was $164.5 million.
The Aerospace segment’s sales totaled $232 million, up 49% year over year. Organic sales increased 9% and acquisition boosted sales by 39%.
Barnes Group, Inc. Price, Consensus and EPS Surprise
Barnes Group’s cost of sales increased 2.3% year over year to $259.4 million. Selling and administrative expenses decreased 12.9% to $84.9 million.
Adjusted operating income was $47.9 million, up 23% year over year, while the margin increased 150 basis points to 12.3%.
Barnes Group’s Balance Sheet & Cash Flow
At the end of the third quarter, Barnes Group had cash and cash equivalents of $80.7 million compared with $89.8 million recorded at the end of 2023. Long-term debt was $1.14 billion, down from $1.28 billion at the end of 2023.
In the first nine months of 2024, the company generated net cash of $49.8 million from operating activities compared with $71 million generated in the year-ago period. Capital expenditures totaled $41.8 million, up 11.8% year over year. Free cashflow (adjusted) was $20.4 million compared with $33.6 million in the year-ago period.
In the first nine months of the year, Barnes Group rewarded its shareholders with dividends of $24.4 million, nearly flat year over year.
2024 Outlook of Barnes Group
Based on its pending acquisition by Apollo Funds, Barnes Group suspended its previously issued financial guidance for the full year 2024.
FLS delivered a trailing four-quarter average earnings surprise of 18.2%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2024 earnings has increased 0.7%.
Ingersoll-Rand plc (IR - Free Report) presently carries a Zacks Rank of 2. IR delivered a trailing four-quarter average earnings surprise of 11%.
In the past 60 days, the consensus estimate for Ingersoll-Rand’s 2024 earnings has inched up 0.6%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 11.2%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 (ending June 2025) earnings has increased 0.3%.
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Barnes Group's Q3 Earnings Miss Estimates, Sales Rise Y/Y
Barnes Group Inc. (B - Free Report) reported adjusted earnings of 9 cents per share in third-quarter 2024, which missed the Zacks Consensus Estimate of 39 cents. The metric decreased 52% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Inside the Headlines
Total sales of $388 million beat the Zacks Consensus Estimate of $373 million. The top line increased 7% year over year, with organic sales growth of 4%.
Barnes Group reports sales under two heads, namely Industrial and Aerospace. A brief snapshot of segmental sales is provided below:
Sales from the Industrial segment amounted to $156 million, down 24% year over year. Organic sales were up 1% year over year. Our estimate for segmental sales was $164.5 million.
The Aerospace segment’s sales totaled $232 million, up 49% year over year. Organic sales increased 9% and acquisition boosted sales by 39%.
Barnes Group, Inc. Price, Consensus and EPS Surprise
Barnes Group, Inc. price-consensus-eps-surprise-chart | Barnes Group, Inc. Quote
Margin Profile
Barnes Group’s cost of sales increased 2.3% year over year to $259.4 million. Selling and administrative expenses decreased 12.9% to $84.9 million.
Adjusted operating income was $47.9 million, up 23% year over year, while the margin increased 150 basis points to 12.3%.
Barnes Group’s Balance Sheet & Cash Flow
At the end of the third quarter, Barnes Group had cash and cash equivalents of $80.7 million compared with $89.8 million recorded at the end of 2023. Long-term debt was $1.14 billion, down from $1.28 billion at the end of 2023.
In the first nine months of 2024, the company generated net cash of $49.8 million from operating activities compared with $71 million generated in the year-ago period. Capital expenditures totaled $41.8 million, up 11.8% year over year. Free cashflow (adjusted) was $20.4 million compared with $33.6 million in the year-ago period.
In the first nine months of the year, Barnes Group rewarded its shareholders with dividends of $24.4 million, nearly flat year over year.
2024 Outlook of Barnes Group
Based on its pending acquisition by Apollo Funds, Barnes Group suspended its previously issued financial guidance for the full year 2024.
Zacks Rank & Stocks to Consider
B currently carries a Zacks Rank #4 (Sell).
Some better-ranked companies are discussed below:
Flowserve Corporation (FLS - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 18.2%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2024 earnings has increased 0.7%.
Ingersoll-Rand plc (IR - Free Report) presently carries a Zacks Rank of 2. IR delivered a trailing four-quarter average earnings surprise of 11%.
In the past 60 days, the consensus estimate for Ingersoll-Rand’s 2024 earnings has inched up 0.6%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 11.2%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2025 (ending June 2025) earnings has increased 0.3%.