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Jun 30, 2020
Mesa Labs Q1 2021 Earnings Report
Mesa Labs reported first quarter results with revenue increase but operating income and net income decrease.
Key Takeaways
Mesa Labs' first quarter results showed a 14% increase in revenues, but a 41% decrease in operating income and a 78% decrease in net income. Organic revenues declined by 4%. Adjusted operating income decreased 1%.
Revenues increased by 14% compared to the same quarter last year.
Operating income decreased by 41% compared to the same quarter last year.
Net income decreased by 78% compared to the same quarter last year.
Organic revenues declined 4% quarter over quarter.
Revenue by Segment
Forward Guidance
The company expects revenues growth to slow in Q2 2021, continued weakness in Instruments orders and revenues, and normalization of service and installation activity in the healthcare segment.
Positive Outlook
- Healthcare segment did begin to open meaningfully towards the end of the quarter.
- The Mesa Way operating model enabled the company to navigate dramatic changes.
- Cost reduction measures enabled overall gross profit as a percentage of revenues to expand.
- Strong financial position with high operating cash flow and a cash position reinforced by $146M of net proceeds.
- Reorganization of the Continuous Monitoring business unit will allow it to operate more efficiently.
Challenges Ahead
- Revenues growth to slow, perhaps in a significant fashion in 2Q21 as customer level inventories correct.
- Continued weakness in Instruments orders and revenues to persist throughout the COVID-19 pandemic.
- Slow-down in biopharmaceutical lab activity impacted both hardware and consumable sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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