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Dec 31, 2022
Clearfield Q1 2023 Earnings Report
Reported a strong financial performance driven by strategic growth plan and sustained demand for high-speed broadband.
Key Takeaways
Clearfield reported strong Q1 2023 results with a 68% increase in net sales to $86 million, including an $8 million contribution from Nestor Cables. The company is reiterating its fiscal year 2023 revenue guidance of $380 million to $393 million and introducing net income guidance of $4.30 to $4.50 per share.
Net sales for the first quarter were $86 million, a 68% increase year-over-year, including an $8 million contribution from Nestor Cables.
Organic net sales growth continues to be driven by leadership in community broadband and expansion across core end markets.
The company is reiterating its previously stated revenue guidance for fiscal year 2023 of $380 million to $393 million.
Net income guidance for fiscal year 2023 is introduced at $4.30 to $4.50 a share.
Clearfield
Clearfield
Forward Guidance
The company is reiterating its previous top-line guidance of estimated revenue between $380 million to $393 million, representing 40% to 45% growth rate over fiscal year 2022. In addition, they are introducing fiscal year 2023 net income guidance of $4.30 to $4.50 a share.
Positive Outlook
- Continued progress on strategic plan amid robust demand for fiber-fed broadband.
- Operational agility allows flexibility in an evolving market.
- Strong foundation to address the long-term demand runway for high-speed broadband across markets.
- Continued work to leverage expertise in Community Broadband, enhance capacity, accelerate infrastructure investments, and prioritize innovative product design.
- Addresses existing demand and prepares for longer-term tailwinds of state and federal funding.
Challenges Ahead
- Availability of labor that customers need to proceed with their planned network builds will be closely monitored.
- Customers re-adjusting their ordering planning to improved product lead times and try to match their order timing to their deployment schedules.
- Expect revenues to follow year-over-year seasonal patterns, resulting in expected strong year-over-year growth in the first half of this fiscal year.
- Still expect to see higher levels of build activity in the second half of the year.
- Improving product lead times as capacity is further improved and order backlog is reduced.