The chart below shows how MAGN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MAGN sees a +0.00% change in stock price 10 days leading up to the earnings, and a +0.00% change 10 days following the report. On the earnings day itself, the stock moves by +0.00%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue Increase Analysis: Revenues increased by 2% to $700 million, driven by higher selling prices and an improved product mix despite flat volumes.
Adjusted EBITDA Improvement: Adjusted EBITDA rose by 8% to $84 million, resulting in an improved adjusted EBITDA margin of 12%, up 68 basis points compared to the prior year quarter.
Americas Division Revenue Growth: The Americas division achieved a 4% revenue improvement, with organic volume growth in healthcare, infrastructure, and wipes product lines, leading to a 6% increase in adjusted EBITDA to $56 million.
Rest of World EBITDA Growth: The Rest of World division's adjusted EBITDA increased by 12% to $28 million, with an improved adjusted EBITDA margin of 10%, driven by cost productivity and differentiated products in growing end markets.
Net Synergies Achievement: Magnera is on track to achieve $55 million in net synergies over the next three years, enhancing operational excellence and cash realization.
Negative
Modest Revenue Increase: Revenues increased by only 2% to $700,000,000 despite flat volumes, indicating a lack of significant growth in demand.
EBITDA Margin Improvement: Adjusted EBITDA margin improved by only 68 basis points to 12%, suggesting limited operational efficiency gains in the face of rising costs.
Americas Division Revenue Drivers: The Americas division's revenue growth was primarily driven by organic volume growth in select product lines, highlighting reliance on specific segments rather than broad-based growth.
Regional Market Challenges: The Rest of World division experienced lower overall volumes due to softness in the Asia Health Care business, indicating regional challenges and potential market saturation.
Debt to EBITDA Ratio: Net debt to pro forma adjusted EBITDA was reported at four times, which is significantly above the targeted leverage goal of three times, raising concerns about financial stability.
Earnings call transcript: Magnera Q1 2024 shows steady growth
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