The chart below shows how MSA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MSA sees a -0.03% change in stock price 10 days leading up to the earnings, and a +3.39% change 10 days following the report. On the earnings day itself, the stock moves by -0.35%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Fourth Quarter Sales Growth: Sales for the fourth quarter reached $500 million, reflecting a 1% increase on a reported basis and a 2% organic growth compared to the prior year.
Operating Margin Improvement: Adjusted operating margin improved to 24%, up 70 basis points year over year, driven by effective SG&A management and lower variable compensation expenses.
Earnings Per Share Increase: Adjusted diluted earnings per share for the fourth quarter were $2.25, representing a 9% increase over the prior year, attributed to higher operating profit and lower interest expenses.
Free Cash Flow Achievement: Free cash flow for the fourth quarter was $93 million, achieving a conversion rate of 105%, supported by higher earnings and improved working capital efficiency.
Earnings Per Share Growth: For the full year, adjusted diluted earnings per share were $7.70, up 10% compared to the previous year, demonstrating strong capital-efficient growth.
Negative
Sales Growth Slowdown: Sales growth for the full year was only 1% on a reported basis and 2% on an organic basis, significantly lower than the anticipated mid single-digit growth, indicating a slowdown in demand.
PPE Sales Decline: Industrial PPE sales experienced a mid single-digit decline for the year, with double-digit contraction in other PPE sales, reflecting weakness in the industrial market.
Gross Profit Margin Decline: Gross profit margin in the fourth quarter decreased by 120 basis points to 46.9%, primarily due to inflation and a challenging project mix, highlighting pressure on profitability.
Free Cash Flow Decline: Free cash flow for the full year was $242 million, a significant drop from $397 million in the prior year, indicating reduced cash generation capabilities amid operational challenges.
Organic Sales Growth Outlook: The company expects low single-digit organic sales growth in 2025, which is a stark contrast to the previous year's performance and suggests ongoing headwinds in the market.
Earnings call transcript: MSA Safety Q4 2024 earnings beat estimates, stock rises
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