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Sep 30, 2021
CVG Q3 2021 Earnings Report
Reported third quarter results with revenue up 27.7% and EPS of $0.23.
Key Takeaways
CVG reported strong third-quarter results, with revenue reaching $239.6 million, a 27.7% increase year-over-year. EPS was $0.23, and adjusted EPS was $0.25. The company secured an estimated $168 million in net new annualized business year-to-date, driven by new business wins in Warehouse Automation and material cost pass through.
Revenue increased by 27.7% to $239.6 million, driven by new business wins and material cost pass through.
Operating income rose by 28.1% to $11.4 million due to higher sales volume.
Net income was $7.5 million, or $0.23 per diluted share.
Secured an estimated $168.0 million of net new annualized business year to date.
Revenue by Segment
Forward Guidance
The demand outlook for the Company's key markets are favorable; however production capacity is limited in a number of our end markets due to continued pandemic-driven supply-chain constraints.
Positive Outlook
- North American Class 8 truck production levels are expected to be at 263,000 units and Class 5-7 production are expected to be at 232,000 units.
- Demand for warehouse automation products is expected to grow approximately 14% annually through 2026.
- Many global electric and fuel cell vehicle platforms are underway across the spectrum of vehicle types.
- Adoption rates are forecast to increase per the Bloomberg NEF Electric Vehicle Outlook.
- Completed an amendment to our credit agreement allowing us to invest in additional capex investment if needed, to support our business mix transformation.
Challenges Ahead
- Production capacity is limited in a number of our end markets due to continued pandemic-driven supply-chain constraints.
- Global supply chain disruptions resulting in extended China supply chains.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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