A month has gone by since the last earnings report for Raven Industries . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Raven Industries due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Raven Beats on Q2 Fiscal 2019 Earnings, Outlook Positive
Ravenreported better-than-expected results for second-quarter fiscal 2019 (ended July 2018).
Earnings/Revenues
Quarterly adjusted earnings came in at 40 cents per share, higher than 23 cents recorded in the year-ago quarter. Also, the bottom line surpassed the Zacks Consensus Estimate of 34 cents. This upside stemmed from strong profitability secured from all of the company’s business divisions and lower corporate taxes.
Net sales in the reported quarter came in at $102.7 million, up 18.6% year over year, driven by solid segmental performances. The acquisition of Colorado Lining International, Inc. (CLI) (September 2017) boosted quarterly revenues by $10.3 million.
Segmental Break-Up
Revenues in the Applied Technology segment came in at $30.4 million, up 6.8% year over year, primarily aided by robust new product sales.
Engineered Films’ top-line performance improved 20.1%, year over year, to $58.9 million. This upswing was largely supported by stronger CLI revenues.
Aerostar revenues in the reported quarter came in at $13.5 million, surging 44.3% year over year. The improvement came on the back of stellar sales volume secured from Aerostar's stratospheric balloon platform.
Cost/Margins
Cost of sales in the reported quarter was $68.1 million, up 13.3% year over year. Gross profit margin expanded 310 basis points (bps) to 33.7%.
Selling, general and, administrative expenses in the fiscal second quarter totaled $11.8 million, higher than the $10.6 million reported in the year-earlier quarter. Operating margin in the reported quarter was 16.2%, up 270 basis points year over year.
Balance Sheet/Cash Flow
Exiting the fiscal second quarter, Raven Industries has cash and cash equivalents of $65.4 million, higher than $40.5 recorded as of Jan 31, 2018. Notably, the company’s cash and cash equivalents increased $14.1 million from the preceding quarter, aided by a robust top-line performance and improved profitability.
In first-half fiscal 2019, the company provided $38.7 million cash from operating activities, up from $19.9 million witnessed in the prior-year quarter. Capital expenditures summed $6.9 million, up from $5.2 million posted in the comparable period last fiscal.
Outlook
Raven Industries believes impressive end-market demand will continue to drive its revenues and profitability in the upcoming quarters. Continued efforts made on product-portfolio solidification, as well as construction of new production facilities will likely be conducive for the company’s near-term performance.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
Image: Bigstock
Raven Industries (RAVN) Down 0.3% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Raven Industries . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Raven Industries due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Raven Beats on Q2 Fiscal 2019 Earnings, Outlook Positive
Ravenreported better-than-expected results for second-quarter fiscal 2019 (ended July 2018).
Earnings/Revenues
Quarterly adjusted earnings came in at 40 cents per share, higher than 23 cents recorded in the year-ago quarter. Also, the bottom line surpassed the Zacks Consensus Estimate of 34 cents. This upside stemmed from strong profitability secured from all of the company’s business divisions and lower corporate taxes.
Net sales in the reported quarter came in at $102.7 million, up 18.6% year over year, driven by solid segmental performances. The acquisition of Colorado Lining International, Inc. (CLI) (September 2017) boosted quarterly revenues by $10.3 million.
Segmental Break-Up
Revenues in the Applied Technology segment came in at $30.4 million, up 6.8% year over year, primarily aided by robust new product sales.
Engineered Films’ top-line performance improved 20.1%, year over year, to $58.9 million. This upswing was largely supported by stronger CLI revenues.
Aerostar revenues in the reported quarter came in at $13.5 million, surging 44.3% year over year. The improvement came on the back of stellar sales volume secured from Aerostar's stratospheric balloon platform.
Cost/Margins
Cost of sales in the reported quarter was $68.1 million, up 13.3% year over year. Gross profit margin expanded 310 basis points (bps) to 33.7%.
Selling, general and, administrative expenses in the fiscal second quarter totaled $11.8 million, higher than the $10.6 million reported in the year-earlier quarter. Operating margin in the reported quarter was 16.2%, up 270 basis points year over year.
Balance Sheet/Cash Flow
Exiting the fiscal second quarter, Raven Industries has cash and cash equivalents of $65.4 million, higher than $40.5 recorded as of Jan 31, 2018. Notably, the company’s cash and cash equivalents increased $14.1 million from the preceding quarter, aided by a robust top-line performance and improved profitability.
In first-half fiscal 2019, the company provided $38.7 million cash from operating activities, up from $19.9 million witnessed in the prior-year quarter. Capital expenditures summed $6.9 million, up from $5.2 million posted in the comparable period last fiscal.
Outlook
Raven Industries believes impressive end-market demand will continue to drive its revenues and profitability in the upcoming quarters. Continued efforts made on product-portfolio solidification, as well as construction of new production facilities will likely be conducive for the company’s near-term performance.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.