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Axalta's (AXTA) Earnings and Revenues Top Estimates in Q4
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Axalta Coating Systems Ltd. (AXTA - Free Report) posted earnings (as reported) of 20 cents per share in fourth-quarter 2022 compared with 23 cents in the year-ago quarter.
Barring one-time items, earnings were 38 cents per share in the reported quarter. It topped the Zacks Consensus Estimate of 36 cents.
The company’s revenues rose around 9% year over year to $1,236.7 million in the quarter. The top line beat the Zacks Consensus Estimate of $1,216.6 million.
The company benefited from higher average price and product mix and improved volumes. It saw higher sales across the Performance Coatings and Mobility Coatings units. Mobility Coatings sales were aided by a recovery in global automotive production and strong pricing. AXTA realized strong pricing gains across all end-markets in the quarter.
Axalta Coating Systems Ltd. Price, Consensus and EPS Surprise
Sales from the Performance Coatings unit rose around 2% year-over-year to $818.5 million in the reported quarter, aided by price and product mix benefit, which offset reduced volumes. Refinish net sales went up around 5% year-over-year to $492.2 million on pricing and product mix benefits, which offset lower volumes due to the impacts of COVID-19 lockdowns in China and weakness in EMEA due to the Russia-Ukraine conflict. Industrial net sales fell roughly 2% to $326.3 million as price-mix growth was offset by reduced volumes primarily due to headwinds in general industrial.
The Mobility Coatings unit recorded sales of $418.2 million in the fourth quarter, up around 26% year over year, driven by strong demand. Volumes rose in Light Vehicle and Commercial Vehicle in the quarter. Light Vehicle net sales climbed around 25% to $319.6 million on volume recovery and strong price-mix growth. Commercial Vehicle net sales rose roughly 26% to $98.6 million, aided by new customer gains and a recovery in global commercial vehicle production rates.
FY22 Results
Earnings for full-year 2022 were 86 cents per share compared with $1.14 per share a year ago. Net sales went up around 11% year over year to $4,884.4 million.
Financials
Axalta ended 2022 with cash and cash equivalents of $645.2 million, down around 23% year over year. Long-term debt was $3,664.2 million at the end of the year, down roughly 2% year over year.
The company generated cash flow from operations of $293.8 million in 2022, down around 47% year over year.
Outlook
The company expects adjusted earnings per share of 26-33 cents for the first quarter of 2023. It also sees net sales to increase 5-9% year over year in the quarter.
For full-year 2022, Axalta envisions the momentum to continue in refinish in the Performance Coatings unit after record profitability in 2022. Contribution from price-cost normalization and share gains are projected to offset potentially weaker industrial markets. In Mobility Coatings, AXTA expects steady quarterly progress throughout this year vis-à-vis fourth-quarter 2022 EBIT run-rate.
The company also expects slight deflation in elevated upstream commodities to offset headwinds from higher labor and energy costs.
Price Performance
Shares of Axalta have gained 1.4% in a year, outperforming the industry’s decline of 20.1%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Axalta currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 0.4% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 107% in a year.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 9.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 55% in a year.
Agnico Eagle currently carries a Zacks Rank #1. The Zacks Consensus Estimate for AEM’s current-year earnings has been revised 0.4% upward in the past 60 days.
Agnico Eagle beat Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.4% on average. AEM’s shares have gained roughly 17% in the past year.
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Axalta's (AXTA) Earnings and Revenues Top Estimates in Q4
Axalta Coating Systems Ltd. (AXTA - Free Report) posted earnings (as reported) of 20 cents per share in fourth-quarter 2022 compared with 23 cents in the year-ago quarter.
Barring one-time items, earnings were 38 cents per share in the reported quarter. It topped the Zacks Consensus Estimate of 36 cents.
The company’s revenues rose around 9% year over year to $1,236.7 million in the quarter. The top line beat the Zacks Consensus Estimate of $1,216.6 million.
The company benefited from higher average price and product mix and improved volumes. It saw higher sales across the Performance Coatings and Mobility Coatings units. Mobility Coatings sales were aided by a recovery in global automotive production and strong pricing. AXTA realized strong pricing gains across all end-markets in the quarter.
Axalta Coating Systems Ltd. Price, Consensus and EPS Surprise
Axalta Coating Systems Ltd. price-consensus-eps-surprise-chart | Axalta Coating Systems Ltd. Quote
Segment Review
Sales from the Performance Coatings unit rose around 2% year-over-year to $818.5 million in the reported quarter, aided by price and product mix benefit, which offset reduced volumes. Refinish net sales went up around 5% year-over-year to $492.2 million on pricing and product mix benefits, which offset lower volumes due to the impacts of COVID-19 lockdowns in China and weakness in EMEA due to the Russia-Ukraine conflict. Industrial net sales fell roughly 2% to $326.3 million as price-mix growth was offset by reduced volumes primarily due to headwinds in general industrial.
The Mobility Coatings unit recorded sales of $418.2 million in the fourth quarter, up around 26% year over year, driven by strong demand. Volumes rose in Light Vehicle and Commercial Vehicle in the quarter. Light Vehicle net sales climbed around 25% to $319.6 million on volume recovery and strong price-mix growth. Commercial Vehicle net sales rose roughly 26% to $98.6 million, aided by new customer gains and a recovery in global commercial vehicle production rates.
FY22 Results
Earnings for full-year 2022 were 86 cents per share compared with $1.14 per share a year ago. Net sales went up around 11% year over year to $4,884.4 million.
Financials
Axalta ended 2022 with cash and cash equivalents of $645.2 million, down around 23% year over year. Long-term debt was $3,664.2 million at the end of the year, down roughly 2% year over year.
The company generated cash flow from operations of $293.8 million in 2022, down around 47% year over year.
Outlook
The company expects adjusted earnings per share of 26-33 cents for the first quarter of 2023. It also sees net sales to increase 5-9% year over year in the quarter.
For full-year 2022, Axalta envisions the momentum to continue in refinish in the Performance Coatings unit after record profitability in 2022. Contribution from price-cost normalization and share gains are projected to offset potentially weaker industrial markets. In Mobility Coatings, AXTA expects steady quarterly progress throughout this year vis-à-vis fourth-quarter 2022 EBIT run-rate.
The company also expects slight deflation in elevated upstream commodities to offset headwinds from higher labor and energy costs.
Price Performance
Shares of Axalta have gained 1.4% in a year, outperforming the industry’s decline of 20.1%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Axalta currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 0.4% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 107% in a year.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 9.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 55% in a year.
Agnico Eagle currently carries a Zacks Rank #1. The Zacks Consensus Estimate for AEM’s current-year earnings has been revised 0.4% upward in the past 60 days.
Agnico Eagle beat Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.4% on average. AEM’s shares have gained roughly 17% in the past year.