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Jun 30, 2020
BWX Technologies Q2 2020 Earnings Report
BWX Technologies reported a strong second quarter with increased revenue and EPS, driven by operational performance and cost control.
Key Takeaways
BWX Technologies reported a strong second quarter in 2020, with a 7% increase in revenue to $505 million. GAAP EPS grew to $0.67, and non-GAAP EPS reached $0.71. The company has increased its full-year non-GAAP EPS guidance to $2.80 - $2.90.
Second quarter revenue increased by 7% year-over-year to $505 million.
GAAP net income for the second quarter was $64.3 million, or $0.67 per diluted share.
Non-GAAP net income for the second quarter was $67.7 million, or $0.71 per diluted share.
Full-year non-GAAP EPS guidance increased to a range of $2.80 – $2.90.
BWX Technologies
BWX Technologies
Forward Guidance
BWXT updated its 2020 guidance to reflect year-to-date performance and management’s outlook on the remainder of the year. 2020 guidance continues to incorporate business conditions related to the COVID-19 pandemic and assumes that current conditions will remain in effect through the remainder of 2020.
Positive Outlook
- Increased non-GAAP EPS from ~$2.80 to a range of $2.80 – $2.90 (excludes pension and post-retirement benefits mark-to-market)
- Increased NOG revenue growth to ~10%
- Consolidated revenue growth of ~8%
- NPG operating margin of ~11%
- Non-GAAP effective tax rate of ~23%
Challenges Ahead
- NPG revenue growth down ~1%
- Non-GAAP operating income and margin
- NOG operating margin in the “high teens” with upside potential from CAS pension reimbursement
- NSG operating income of ~$25 million
- Unallocated corporate expenses of ~$15 million