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Jun 30, 2021
Clearfield Q3 2021 Earnings Report
Clearfield's financial performance in the third quarter and first nine months of fiscal 2021 demonstrated the company's unique positioning in the broadband market.
Key Takeaways
Clearfield reported a record-setting financial performance in Q3 2021, with net sales up 49% year-over-year to $38.7 million, driven by strong demand for fiber-fed broadband. Gross profit increased by 59% to $17.1 million, and net income reached $6.1 million, or $0.44 per diluted share. The company's backlog grew significantly, and they increased their net sales guidance for fiscal year 2021.
Net sales increased 49% year-over-year to $38.7 million.
Gross profit increased 59% to $17.1 million (44.2% of net sales).
Order backlog increased 377% to $40.3 million.
Net income reached $6.1 million, or $0.44 per diluted share.
Forward Guidance
Clearfield increased its net sales guidance for fiscal 2021 to $130 million to $135 million, representing year-over-year growth of more than 40%. They anticipate net income as a percentage of total net sales to be consistent with year-to-date levels. Current market forecasts will translate to projected annual net sales of $150 million to $160 million in fiscal year 2022, representing growth of 15-20% over projected fiscal year 2021 revenues.
Positive Outlook
- Strong financial performance and $40.3 million backlog provide confidence to increase net sales guidance.
- Demand for fiber-fed broadband is expected to persist through fiscal 2021 and into fiscal 2022.
- The 'Now of Age' Plan positions the company for continued success.
- Market presence established over the last 10 years, along with recent strategic investments, will enable response to market demand.
- Government initiatives and overall market strength support growth potential.
Challenges Ahead
- Supply chain remains volatile and may pose challenges.
- Selling, general and administrative costs are expected to grow moderately.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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