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Dec 31, 2019
Graham Q3 2020 Earnings Report
Reported breakeven net income and EPS for the third quarter of fiscal year 2020.
Key Takeaways
Graham Corporation reported a revenue increase of $25.3 million compared to $17.2 million in the third quarter of fiscal year 2019. Net income and EPS were breakeven for the quarter.
Third quarter revenue of $25 million.
Third quarter orders of $20 million.
Backlog remains strong at $123 million as of December 31.
Reiterating fiscal 2020 revenue guidance of 20% to 26% growth and revising gross margin to between 21% and 22%.
Forward Guidance
Graham is updating its fiscal 2020 guidance which excludes the divested Energy Steel business.
Positive Outlook
- Revenue anticipated to be between $100 million and $105 million.
- SG&A expense expected to be between $17 million and $17.5 million
- Pipeline continues to be very active as customers plan their capacity expansion and upgrade projects.
- Gaining traction with initiatives to expand revenue opportunities derived from installed base.
- Penetrating new geographic markets, and broaden revenue from the U.S. Navy.
Challenges Ahead
- Gross margin expectations between 21% and 22%, with the reduction caused by project mix
- Effective tax rate anticipated to be approximately 20%
- Guidance includes fulfillment of a short cycle naval order that is in backlog.
- If unable to complete naval order during the quarter, revenue will likely fall below the lower range of guidance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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