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Sep 30, 2023
Modine Q2 2024 Earnings Report
Modine's second quarter fiscal 2024 results were reported, marked by revenue growth and increased profitability.
Key Takeaways
Modine reported a 7% increase in net sales, a 79% increase in operating income, and a significant rise in adjusted EBITDA, driven by data center growth and 80/20 initiatives, leading to an upward revision of the full-year earnings outlook.
Net sales increased by 7% year-over-year to $620.5 million.
Operating income rose by 79% year-over-year to $65.7 million.
Earnings per share increased to $0.87, compared to $0.46 in the prior year.
Data center sales more than doubled compared to the prior year.
Revenue by Segment
Forward Guidance
Modine raised its full-year earnings guidance due to stronger than expected second quarter performance, but maintains a cautious outlook based on current economic conditions and trends in other end markets, confirming its second half top-line outlook.
Positive Outlook
- Volumes in data center business have exceeded expectations.
- Confident in ability to achieve near-term profitability goals.
- Business transformation remains on track or ahead of schedule.
- Revised outlook for fiscal 2024 net sales is +6% to +11%.
- Revised outlook for fiscal 2024 Adjusted EBITDA is $285 to $300 million.
Challenges Ahead
- Maintaining a cautious outlook based on current economic conditions.
- Maintaining a cautious outlook based on trends in other end markets.
- Estimates of expenses and gains for the remainder of fiscal 2024 are not available due to the low visibility and unpredictability of these items.
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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