THR

Current Stock Performance: Thermon Group Holdings has experienced significant price fluctuations, currently trading at US$28.80, which is slightly below the industry average price-to-earnings ratio, suggesting it may be fairly valued but could present future buying opportunities due to its volatility.

Future Growth Potential: Analysts forecast a 39% profit growth for Thermon Group Holdings in the coming years, indicating a positive outlook; however, investors should consider the company's financial strength and market conditions before making investment decisions.

Stock Performance Overview: THR's stock has a 52-week low of $25.76 and a high of $35.93, with the last trade recorded at $30.19.

Author's Perspective Disclaimer: The opinions expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.

Industry Challenges and Opportunities: The Zacks Instruments – Control industry faces challenges such as volatile raw material prices, high capital expenditures, and intense competition, but companies like Watts Water Technologies, Badger Meter, and Thermon Group are expected to benefit from increased demand for digitized technologies and energy-efficient solutions.

Company Performances: Watts Water is focusing on smart product development and cost-reduction strategies; Badger Meter is enhancing its digital solutions for real-time data; and Thermon is expanding its market reach through acquisitions, all while navigating a competitive landscape that pressures margins.

Insider Trading Activity: David Buntin, SVP of $THR, sold 3,953 shares on December 12, 2024, representing 6.3% of his holdings, leaving him with 58,894 shares. In the past six months, there have been three insider sales and no purchases of $THR stock.

Institutional Investor Movements: In the latest quarter, 80 institutional investors increased their positions in $THR, while 75 reduced theirs, indicating mixed sentiment among institutional stakeholders regarding the stock.

Macy's Financial Outlook: Macy's shares fell 8.7% after the company cut its 2024 earnings forecast and reported adjusted earnings of 4 cents per share, slightly above expectations, while net sales matched forecasts at $4.74 billion.

Turnaround Strategy and Activist Investors: Amid accounting errors and activist investor interest, Macy's is focusing on a turnaround plan that includes closing low-productivity stores and enhancing luxury brand offerings, with preliminary results indicating some success in their new initiatives.

Macy's Financial Challenges: Macy's is facing scrutiny due to accounting errors that resulted in the concealment of $154 million in expenses, prompting a delay in their third-quarter earnings report. Preliminary results indicate a 2.4% decline in net sales compared to last year.

Activist Investor Engagement: The company is under pressure from activist investors Barington Capital and Thor Equities, who propose changes to improve share value, including creating a real estate segment and aggressive stock repurchases, while Macy's remains focused on its "Bold New Chapter" turnaround strategy.

Earnings Call Overview: Thermon Group Holdings Inc. held its Q2 2025 earnings call on November 7, 2024, featuring key executives including CEO Bruce Thames and CFO Jan Schott, discussing financial results and future outlook.

Financial Reporting Notes: The company emphasized the inclusion of non-GAAP measures in their financial reporting, which are reconciled to GAAP measures, and reminded participants about forward-looking statements made during the call.

Acquisition and Market Expansion: Thermon Group Holdings has acquired Italy-based F.A.T.I. for €12.5 million to enhance its product offerings and global reach, particularly in the electrification and decarbonization sectors, which are experiencing rising demand.

Growth Strategies and Financial Performance: The company is actively pursuing both organic and inorganic growth strategies, including recent acquisitions like Vapor Power International, contributing to a 7.7% year-over-year revenue increase in Q1 fiscal 2025, while also launching the Genesis Network to improve heating system efficiency.

Acquisition Announcement: Thermon Group has acquired Italy-based Fabbrica Apparecchiature Termoelettriche Industriali S.r.L. for €12.5 million.

Company Profile: F.A.T.I. specializes in manufacturing electrical heaters and heating systems for various industries, including oil & gas, pharmaceuticals, renewables, nuclear, and HVAC, serving over 30 countries globally.

New CFO Appointment: Thermon Group Holdings, Inc. has appointed Jan L. Schott as Senior Vice President and Chief Financial Officer, effective October 14, 2024, following the departure of previous CFO Kevin Fox in April.

Interim Leadership Transition: Greg Lucas has been promoted to Vice President and Chief Accounting Officer after serving as the interim principal financial officer, while Schott brings over 30 years of experience from her previous role at TG Natural Resources.

New CFO Appointment: Thermon Group Holdings, Inc. has appointed Jan L. Schott as Senior Vice President and Chief Financial Officer, effective October 14, 2024, following the departure of previous CFO Kevin Fox in April.

Interim Leadership Transition: Greg Lucas, who served as interim principal financial officer, has been promoted to Vice President and Chief Accounting Officer, while Schott brings over 30 years of experience from her previous role at TG Natural Resources.

New Appointments at Thermon: Jan L. Schott has been appointed as Senior Vice President and Chief Financial Officer, effective October 14, 2024, while Greg Lucas has been promoted to Vice President and Chief Accounting Officer on the same date.

Previous Experience of New CFO: Prior to her role at Thermon, Ms. Schott was the Executive Vice President and Chief Financial Officer of TG Natural Resources.

Job Market Challenges: ABM Industries at Boston Logan International Airport is currently not hiring, highlighting ongoing difficulties in filling hourly roles despite a booming job market.

Cleaning Staff Shortage: The company specializes in cleaning airport terminals, which has been one of the hardest positions to fill in recent years.

Earnings Report Announcement: Thermon Group is set to report its Q1 earnings on August 7, with analysts predicting earnings per share of $0.311, a decrease from $0.330 in the same quarter last year.

Sales and Revenue Expectations: Analysts expect an 8.51% increase in sales, projecting total revenue of $116.0 million for the quarter and a profit per share of $1.98 for the current fiscal year, up from $1.53 reported last year.

Sensata's Earnings Report: Sensata Technologies reported quarterly earnings of $0.93 per share, matching expectations but down from $0.97 a year ago, with revenues of $1.04 billion slightly missing estimates. The company has surpassed EPS estimates twice in the last four quarters.

Future Outlook: The stock is currently rated Zacks Rank #3 (Hold), indicating expected performance in line with the market, while upcoming earnings estimates for the next quarter and fiscal year suggest cautious optimism amidst mixed revision trends.

Thermon Group Holdings Q4 FY24 Results:

• Reported a 4% Y/Y revenue increase to $127.7 million, beating consensus.
• Driven by sales growth in diversified end markets and decarbonization projects.
• Bookings of $117.0 million with 73% orders in diversified end markets.
• Gross profit grew 2% to $52.4 million with a margin of 41.0%.
• Adjusted EBITDA fell 6% to $23.6 million due to planned investments.

Financial Outlook for FY25:

• Expects revenues of $527 million-$553 million, representing 9% growth.
• Projects adjusted EPS of $1.90-$2.06 compared to street view of $1.95.
• Available liquidity at the end of the quarter was $141.3 million.
• CEO Bruce Thames emphasizes continuous improvement and long-term value creation.

Stock Performance:

• THR shares down 1.39% at $34.40 as of the last check on Wednesday.

Thermon Group Holdings Q4 FY24 Results:

• Reported a 4% Y/Y revenue increase to $127.7 million, beating consensus.
• Driven by sales growth in diversified end markets and decarbonization projects.
• Bookings of $117.0 million with 73% orders in diversified end markets.
• Gross profit grew 2% to $52.4 million, with a margin contraction.
• Adjusted EBITDA fell 6% to $23.6 million due to planned investments.

Financial Outlook for FY25:

• Expects revenues of $527 million-$553 million, representing 9% growth.
• Projects adjusted EPS of $1.90-$2.06 compared to street view of $1.95.
• Focus on continuous improvement and long-term value creation for shareholders.

Thermon Q4 Financial Performance:

• Q4 Non-GAAP EPS of $0.34 beat by $0.02.
• Revenue of $127.7M (+4.2% Y/Y) beat by $1.04M.
• Adjusted EBITDA was $23.6 million, a decrease of 6%.
• Bookings were $117.0 million, a contraction of 12%.
• Backlog increased to $186.1 million, up 14% from Q4 2023.

Thermon's Financial Position:

• Net Debt-to-Adjusted EBITDA ratio increased to 1.2x.
• Available liquidity at the end of the quarter was $141.3 million.
• Cash from operating activities was $37.4 million.
• Free Cash Flow was a record $35.1 million in the quarter.

Fiscal 2025 Outlook:

• Anticipates revenue in the range of $527 million to $553 million.
• Expects Adjusted EBITDA to be approximately $112 million to $120 million.
• Forecasts GAAP EPS to be approximately $1.57 to $1.73.
• Predicts Adjusted EPS to be approximately $1.90 to $2.06.

Thermon Group News:

• Thermon Group announced a buyback of $50M stock.
• Seeking Alpha’s Quant Rating on Thermon suggests a cooling down period.