Loading...
•
Sep 30, 2020
Zurn Elkay Q3 2020 Earnings Report
Reported an outstanding third quarter, demonstrating benefits from long-term strategy and investments, with exceptional service amidst unprecedented challenges.
Key Takeaways
Rexnord reported net sales of $494 million, a 5% decrease compared to the previous year. Net income from continuing operations was $45 million, or $0.37 per diluted share, compared to $57 million, or $0.46 per diluted share, in the year-ago quarter. Adjusted EPS was $0.47 compared to $0.51 in the prior year. Adjusted EBITDA was $109 million, representing 22.0% of net sales, compared to $118 million, or 22.7% of net sales, in the previous year.
Net sales were $494 million, 5% below the previous year's September quarter.
Net income from continuing operations was $45 million (diluted EPS of $0.37), compared to $57 million (diluted EPS of $0.46) in the year-ago quarter.
Adjusted EPS was $0.47 compared with $0.51 in the year-ago quarter.
Adjusted EBITDA was $109 million (22.0% of net sales) compared with $118 million (22.7% of net sales) in last year's September quarter.
Forward Guidance
For the fourth quarter, the company expects core sales to decline between 7% and 11%, total segment Adjusted EBITDA margin to range between 21.5% and 23%, and corporate expenses to approximate $9 million.
Positive Outlook
- Permanent cost reduction initiatives implemented.
- Order backlogs heading into the December quarter.
- October results to date.
- Anticipated range of demand patterns through December.
- High confidence in the resilience of the business model, execution, and strategy.
Challenges Ahead
- Guarded external outlook due to the potential range of outcomes based on things outside our control.
- Current realities of the ongoing pandemic.
- Potential for demand patterns to shift negatively.
- Uncertainty regarding the full impact of the pandemic.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...