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Sep 30, 2022
Standex Q1 2023 Earnings Report
Reported strong organic growth and record consolidated adjusted operating margin.
Key Takeaways
Standex International Corporation reported strong first quarter performance with 7.3% organic revenue growth and a record consolidated adjusted operating margin of 15.0%. Sales from fast growth markets increased 30% year-over-year to $17 million.
GAAP Operating Margin of 14.6% and Record Adjusted Operating Margin of 15.0%, up 110 bps sequentially and 160 bps year on year.
7.3% Organic Revenue Growth Year on Year, Led by Specialty and Engraving Segments.
Fast Growth Market Sales Increased ~30% Year on Year to ~$17 Million; Fast Growth Market Sales in Fiscal 2023 Expected to Increase ~35% Versus Prior Year.
Expect to Build on Momentum with Continued Improvement in Key Financial Metrics in Fiscal 2023
Standex
Standex
Standex Revenue by Segment
Revenue by Segment
Electronics Revenue
CapyFin.comEngraving Revenue
CapyFin.comScientific Revenue
CapyFin.comEngineering Technologies Revenue
CapyFin.comSpecialty Solutions Revenue
CapyFin.com Forward Guidance
The Company expects slightly higher revenue and similar operating margin to fiscal first quarter 2023, with flat revenue and moderate to significant improvement in operating margin on a year-over-year basis.
Positive Outlook
- Mid- to high-single-digit organic growth rate.
- Engineering Technologies Group segment to be the primary revenue driver with a moderate to significant increase compared to fiscal first quarter 2023.
- Scientific segment revenue is expected to slightly increase.
- Electronics and Engraving segment revenue is expected to be similar to fiscal first quarter 2023.
- Operating margin is expected to be similar as volume decline is offset by pricing and productivity actions.
Challenges Ahead
- Currency impact will largely offset organic growth.
- Specialty Solutions segment revenue is expected to slightly decline.
- Electronics segment expects a slight decrease in operating margin, mostly due to mix and higher growth investments, partially offset by continued price actions.
- Engraving segment expects operating margin to decrease slightly due to project mix.
- Scientific segment expects slightly lower to similar operating margin, primarily due to R&D investments and higher anticipated spend on advertising and tradeshows
Revenue & Expenses
Visualization of income flow from segment revenue to net income