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Dec 31, 2019

SPX Q4 2019 Earnings Report

SPX's Q4 2019 earnings were reported, with adjusted EPS of $0.96 and revenue of $444.6 million.

Key Takeaways

SPX Corporation reported Q4 2019 revenue of $444.6 million and operating income of $51.0 million. The adjusted EPS was $0.96, compared to $0.91 in Q4 2018. The company completed the acquisition of Patterson-Kelley within its HVAC segment.

SPX reported revenue of $444.6 million and operating income of $51.0 million.

Adjusted revenue was $445.1 million and adjusted operating income was $62.6 million.

Diluted EPS was $0.75, while adjusted EPS was $0.96.

The company completed three strategic acquisitions, including Patterson-Kelley.

Total Revenue
$445M
Previous year: $445M
-0.1%
EPS
$0.96
Previous year: $0.89
+7.9%
HVAC Organic Revenue Growth
2.1%
Detection/Measurement Organic Revenue Growth
-5%
Gross Profit
$144M
Previous year: $135M
+6.1%
Cash and Equivalents
$50.7M
Previous year: $68.5M
-26.0%
Total Assets
$2.13B
Previous year: $2.06B
+3.7%

SPX

SPX

SPX Revenue by Segment

Forward Guidance

SPX is targeting 2020 adjusted revenue of approximately $1.6 billion with adjusted segment income margin of 15.0-16.0% and adjusted operating income margin of approximately 11.5%. Adjusted earnings per share is expected to be in a range of $2.90 to $3.05.

Positive Outlook

  • Targeting 2020 adjusted revenue of approximately $1.6 billion
  • Adjusted segment income margin of 15.0-16.0%
  • Adjusted operating income margin of approximately 11.5%
  • Adjusted earnings per share is expected to be in a range of $2.90 to $3.05
  • HVAC revenue in a range of $630-640 million (+7% vs 2019 at midpoint)

Challenges Ahead

  • Detection & Measurement revenue in a range of $395-415 million (+5% vs 2019 at midpoint)
  • Engineered Solutions revenue in a range of $550-560 million (+1% vs 2019 at midpoint)
  • HVAC Segment Income Margin 16-16.5%
  • Detection & Measurement Segment Income Margin 23-24%
  • Engineered Solutions Segment Income Margin ~8.5%

Revenue & Expenses

Visualization of income flow from segment revenue to net income