ESAB Earnings Prediction
The chart below shows how ESAB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ESAB sees a -4.51% change in stock price 10 days leading up to the earnings, and a +5.08% change 10 days following the report. On the earnings day itself, the stock moves by +2.91%. This data can give you a slight idea of what to expect for the next quarter's release.
ESAB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
673.25M
-1.14%
-4.78%
Gross Margin
37.70%
2.81%
-1.39%
Operating Margin
16.03%
4.70%
-8.71%
Net Margin
10.55%
18.14%
-12.81%
EPS
1.12
17.89%
-17.65%
No Data Available
ESAB Earnings Analysis
ESAB Corporation Corporation (ESAB.N) Earnings Conference Call
Positive
Strong Organic Growth: Earnings call highlighted strong organic growth with a 130 basis points year-over-year margin expansion and robust free cash flow generation despite challenging market conditions.
EBITDA Margin Expansion: Adjusted EBITDA margins expanded by 130 basis points to reach a record 19.6% for the third quarter, driven by EBX initiatives across the company.
Record Adjusted Free Cash Flow: The company generated a record $215 million in adjusted free cash flow year-to-date, enabling the execution of its compounded strategy.
Equipment Sales Growth: Equipment sales increased in the low double digits this quarter, with new products gaining momentum across channels, contributing to overall growth.
Brand Recognition Improvement: The company reported a 200% improvement in brand recognition in North America, reflecting successful marketing and product initiatives.
Negative
Flat Organic Growth Outlook: Earnings call highlighted a flat organic growth expectation for the fourth quarter, indicating potential stagnation in revenue generation.
Sales Performance Outlook: The company anticipates a slight decline in volumes in the Americas, which could negatively impact overall sales performance.
Cash Conversion Inefficiencies: Despite positive cash flow generation, the company reported a cash conversion rate of less than 120%, suggesting inefficiencies in converting earnings to cash.
Adjusted EPS Increase: The adjusted EPS increased to $4.80 to $4.95, but this was primarily due to cost management rather than significant revenue growth.
Margin Maintenance Challenges: The company expects to face challenges in maintaining margins in the upcoming quarters, particularly in the Americas and EMEA regions.
ESAB FAQs
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ESAB Earning Call Sentiment
ESAB Corporation (ESAB) Q3 2024 Earnings Call Transcript
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00:00
00:00
ESAB.N
-0.04%Positive
The earnings call summary presents a generally positive outlook with strong financial performance, increased EBITDA margins, and a significant dividend increase. The acquisition of Linde's welding business in Bangladesh and the digital strategy are potential growth drivers. The Q&A section reveals positive sentiment from analysts, particularly regarding growth in North America and Europe. However, supply chain challenges and competitive pressures pose risks. Overall, the positive elements, such as strong cash flow and optimistic guidance, outweigh the concerns, suggesting a likely positive stock price movement in the near term.
