Barnes Group Q1 2022 Earnings Report
Key Takeaways
Barnes Group Inc. reported a 4% increase in net sales to $312 million for Q1 2022, with organic sales up 6%. GAAP EPS was $0.40, and adjusted EPS was $0.41, an 8% increase year-over-year. The company forecasts 2022 organic sales growth of +8% to +10% and expects adjusted EPS of $2.20 to $2.40.
Sales of $312 million, up 4% versus the prior year period; Organic Sales up 6%.
Operating Margin of 10.0%; Adjusted Operating Margin of 10.2%, down 50 bps from a year ago.
GAAP EPS of $0.40; Adjusted EPS of $0.41, up 8% versus the prior year period.
Forecasts 2022 Organic Sales Growth of +8% to +10%.
Barnes Group
Barnes Group
Barnes Group Revenue by Segment
Forward Guidance
Barnes continues to expect 2022 organic sales growth of 8% to 10% and negative foreign exchange of approximately 2%. Adjusted operating margin is now forecasted to be in the range of 12.5% to 13.5%. Adjusted earnings are expected to be in the range of $2.20 to $2.40 per diluted share, up 13% to 24% from 2021’s adjusted earnings of $1.94 per share.
Positive Outlook
- Expects 2022 organic sales growth of 8% to 10%.
- Adjusted earnings are expected to be in the range of $2.20 to $2.40 per diluted share.
- The Company forecasts capital expenditures of between $50 and $55 million.
- Cash conversion of greater than 100% of net income.
- Effective tax rate for 2022 is expected to be approximately 24% to 25%.
Challenges Ahead
- Negative foreign exchange of approximately 2%.
- Adjusted operating margin is now forecasted to be in the range of 12.5% to 13.5%, down slightly from prior view.
- The updated adjusted earnings per share forecast is $0.05 lower at the high end of our previous range.
- Macroeconomic headwinds in Industrial segment.
- 2022 adjusted earnings per share are anticipated to exclude a $0.03 impact related to residual restructuring activities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income