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Tecnoglass (TGLS) Stock Rises on Q4 Earnings & Revenue Beat
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Tecnoglass Inc. (TGLS - Free Report) reported solid results for fourth-quarter 2022. The top and bottom lines surpassed their respective Zacks Consensus Estimate and increased on a year-over-year basis. The upside reflects solid execution, the resiliency of the vertically integrated business model and benefits from earlier implemented high-return automation and capacity enhancements.
Shares of TGLS jumped 9.9% during the trading session on Mar 2.
José Manuel Daes, chief executive officer of Tecnoglass, said, “Our prudent working capital management and market share gains in our shorter cash cycle single-family residential business helped generate our 12th consecutive quarter of robust cash flow.”
Looking forward, he further added, “We remain confident in our ability to strengthen our existing customer relationships and expand our market share through geographical diversification, innovation, quality and stable lead times to produce another year of strong financial performance and returns for our shareholders.”
Tecnoglass adjusted earnings of $1.09 per share surpassed the Zacks Consensus Estimate of 99 cents by 10.1%. The quarterly earnings increased from the year-ago adjusted figure of 50 cents per share.
Total revenues of $211.1 million increased 60.2% year over year and topped the consensus mark of $205 million by 3.4%. The upside was driven by an increase in the company’s commercial activity, solid growth in single-family residential activity and market share gains. However, foreign currency changes had an adverse impact of $0.6 million on Colombia’s revenues and total revenues in the quarter.
Operating Highlights
A gross margin of 52.2% in the quarter expanded 930 basis points (bps) year over year. The improvement was due to higher sales, favorable pricing dynamics, greater operating efficiencies related to automation and a favorable FX trend.
Selling, general and administrative expenses, as a percentage of total revenues, was 15.8% in the quarter, showing an improvement from 18% a year ago.
Adjusted EBITDA was $87.2 million, an increase of 106.6% year over year. Adjusted EBITDA margin expanded to 41.3% from 32% a year ago.
2022 Highlights
Total revenues of $716.6 million increased 44.2% from 2021. Adjusted earnings came in at $3.32 per share, an increase of 90.8% from 2021. Gross margin expanded to 48.8% from 40.8% a year ago. Adjusted EBITDA margin of 37.1% showed an improvement of 690 bps year over year.
Financials
As of Dec 31, 2022, TGLS’ cash and cash equivalents was $103.7 million (compared with $85 million at 2021-end). Long-term debt was $169 million at the end of 2022, down from $188.4 million at 2021-end.
At 2022-end, the company had total liquidity of $270 million and availability under its committed revolving credit facilities of $170 million.
2023 Outlook
Based on strong demand for architectural glass products, TGLS expects revenues to grow organically from $790 million to $830 million (up 13% considering the mid-point of guidance). It expects adjusted EBITDA to increase from $300 million to $320 million. This implies Adjusted EBITDA growth of 17% at the midpoint.
Kroger, a supermarket operator, currently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 6.1%.
The Zacks Consensus Estimate for Kroger’s current financial-year revenues and EPS suggests growth of 7.5% and 12.5%, respectively, from the year-ago reported figure. Kroger has a trailing four-quarter earnings surprise of 13.4%, on average.
Arhaus, which operates as a lifestyle brand and premium retailer in the home furnishing market, presently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 16.1%.
The Zacks Consensus Estimate for Arhaus’ current financial-year revenues and EPS suggests growth of 54% and 26.1%, respectively, from the year-ago reported figure. Arhaus has a trailing four-quarter earnings surprise of 112%, on average.
Ulta Beauty currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 13.8%.
The Zacks Consensus Estimate for Ulta Beauty’s current financial-year sales suggests growth of 15.8% from the year-ago period. This beauty retailer and the premier beauty destination for cosmetics, fragrance, skincare products, hair care products and salon services have a trailing four-quarter earnings surprise of 26.2%, on average.
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Tecnoglass (TGLS) Stock Rises on Q4 Earnings & Revenue Beat
Tecnoglass Inc. (TGLS - Free Report) reported solid results for fourth-quarter 2022. The top and bottom lines surpassed their respective Zacks Consensus Estimate and increased on a year-over-year basis. The upside reflects solid execution, the resiliency of the vertically integrated business model and benefits from earlier implemented high-return automation and capacity enhancements.
Shares of TGLS jumped 9.9% during the trading session on Mar 2.
José Manuel Daes, chief executive officer of Tecnoglass, said, “Our prudent working capital management and market share gains in our shorter cash cycle single-family residential business helped generate our 12th consecutive quarter of robust cash flow.”
Looking forward, he further added, “We remain confident in our ability to strengthen our existing customer relationships and expand our market share through geographical diversification, innovation, quality and stable lead times to produce another year of strong financial performance and returns for our shareholders.”
Tecnoglass Inc. Price, Consensus and EPS Surprise
Tecnoglass Inc. price-consensus-eps-surprise-chart | Tecnoglass Inc. Quote
Earnings & Revenue Discussion
Tecnoglass adjusted earnings of $1.09 per share surpassed the Zacks Consensus Estimate of 99 cents by 10.1%. The quarterly earnings increased from the year-ago adjusted figure of 50 cents per share.
Total revenues of $211.1 million increased 60.2% year over year and topped the consensus mark of $205 million by 3.4%. The upside was driven by an increase in the company’s commercial activity, solid growth in single-family residential activity and market share gains. However, foreign currency changes had an adverse impact of $0.6 million on Colombia’s revenues and total revenues in the quarter.
Operating Highlights
A gross margin of 52.2% in the quarter expanded 930 basis points (bps) year over year. The improvement was due to higher sales, favorable pricing dynamics, greater operating efficiencies related to automation and a favorable FX trend.
Selling, general and administrative expenses, as a percentage of total revenues, was 15.8% in the quarter, showing an improvement from 18% a year ago.
Adjusted EBITDA was $87.2 million, an increase of 106.6% year over year. Adjusted EBITDA margin expanded to 41.3% from 32% a year ago.
2022 Highlights
Total revenues of $716.6 million increased 44.2% from 2021. Adjusted earnings came in at $3.32 per share, an increase of 90.8% from 2021. Gross margin expanded to 48.8% from 40.8% a year ago. Adjusted EBITDA margin of 37.1% showed an improvement of 690 bps year over year.
Financials
As of Dec 31, 2022, TGLS’ cash and cash equivalents was $103.7 million (compared with $85 million at 2021-end). Long-term debt was $169 million at the end of 2022, down from $188.4 million at 2021-end.
At 2022-end, the company had total liquidity of $270 million and availability under its committed revolving credit facilities of $170 million.
2023 Outlook
Based on strong demand for architectural glass products, TGLS expects revenues to grow organically from $790 million to $830 million (up 13% considering the mid-point of guidance). It expects adjusted EBITDA to increase from $300 million to $320 million. This implies Adjusted EBITDA growth of 17% at the midpoint.
Zacks Rank
TGLS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
3 More Picks You Can’t Miss Out On
Here we have highlighted three other top-ranked stocks, namely Kroger (KR - Free Report) , Arhaus (ARHS - Free Report) and Ulta Beauty (ULTA - Free Report) .
Kroger, a supermarket operator, currently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 6.1%.
The Zacks Consensus Estimate for Kroger’s current financial-year revenues and EPS suggests growth of 7.5% and 12.5%, respectively, from the year-ago reported figure. Kroger has a trailing four-quarter earnings surprise of 13.4%, on average.
Arhaus, which operates as a lifestyle brand and premium retailer in the home furnishing market, presently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 16.1%.
The Zacks Consensus Estimate for Arhaus’ current financial-year revenues and EPS suggests growth of 54% and 26.1%, respectively, from the year-ago reported figure. Arhaus has a trailing four-quarter earnings surprise of 112%, on average.
Ulta Beauty currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 13.8%.
The Zacks Consensus Estimate for Ulta Beauty’s current financial-year sales suggests growth of 15.8% from the year-ago period. This beauty retailer and the premier beauty destination for cosmetics, fragrance, skincare products, hair care products and salon services have a trailing four-quarter earnings surprise of 26.2%, on average.