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Dec 31, 2023
Standex Q2 2024 Earnings Report
Reported financial results for the second quarter of fiscal year 2024.
Key Takeaways
Standex International Corporation reported second quarter fiscal year 2024 results with a record adjusted gross margin of 40.3% and a record adjusted operating margin of 16.1%. Despite a softer top line, the company achieved growth in fast growth market sales, which increased by 14% year-on-year.
Fast Growth Market Sales Increased ~14% Year-On-Year to ~$21 Million
Record GAAP Gross Margin of 40.2% and Adjusted Gross Margin of 40.3%
GAAP Operating Margin of 14.5%; Record Adjusted Operating Margin of 16.1%, up 90 bps Year-On-Year
Record Year-to-Date Free Cash Flow of $31.6 Million
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
In the fiscal third quarter 2024, the Company expects slightly higher revenue due to a slight recovery in the Electronics and Specialty segments and contribution from the pending acquisition of Sanyu, partially offset by lower sales in the Engraving segment. The Company expects slightly lower adjusted operating margin, primarily resulting from one-time charge due to the CEO reaching retirement eligibility under the stock compensation plan. In the fiscal fourth quarter 2024, on a sequential basis, the company expects meaningfully higher revenue and continued improvement in adjusted operating margin.
Positive Outlook
- Slightly higher revenue expected in Q3 due to recovery in Electronics and Specialty segments.
- Contribution from the pending acquisition of Sanyu expected in Q3.
- Meaningfully higher revenue expected in Q4.
- Continued improvement in adjusted operating margin expected in Q4.
Challenges Ahead
- Lower sales expected in the Engraving segment in Q3.
- Slightly lower adjusted operating margin expected in Q3 due to a one-time charge related to CEO retirement eligibility.
- Organic Sales Decline of 7.4% Year-on-Year Due to Project Timing in the Engineering Technologies Segment and Transitory Market Softness
- Electronics segment backlog realizable in under one year of approximately $112 million decreased 27% year-on-year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income