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Jun 30, 2023
Standex Q4 2023 Earnings Report
Standex reported a strong fourth quarter performance, marked by organic growth and record margins.
Key Takeaways
Standex International Corporation reported strong Q4 2023 financial results, featuring 7.8% organic growth and a significant increase in fast growth market sales. The company achieved record gross and adjusted operating margins, driven by pricing and productivity initiatives. Standex anticipates continued growth and margin expansion in fiscal year 2024, supported by strategic acquisitions and a focus on fast-growth end markets.
Organic growth reached 7.8%, with fast growth market sales increasing by approximately 67% year-on-year.
GAAP operating margin was 15.1%, and the adjusted operating margin hit a record 15.4%, up 150 bps year-on-year.
Record gross margin was achieved at 39.1%, up 280 bps year-on-year.
Free cash flow conversion was 158% of GAAP net income.
Revenue by Segment
Forward Guidance
In fiscal year 2024, the Company expects high single digit sales growth and continued margin expansion.
Positive Outlook
- High single digit sales growth expected.
- Continued margin expansion expected.
- Organic growth in Engraving.
- Contribution from Minntronix acquisition.
- Long-term demand remains robust.
Challenges Ahead
- Slight increase in revenue expected in Q1 2024.
- Slow recovery in China and Europe markets served by Electronics.
- Impact of the Procon divestiture.
- Slightly lower revenue sequentially.
- Unfavorable project timing in Engineering Technologies.
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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