Barnes Shares Slide Post Q2 Top-Line Miss, FY22 Guidance Cut

Akanksha Bakshi
2 min read
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In this article:

  • Barnes Group Inc. (NYSE: B) reported that second-quarter FY22 sales were flat year-over-year at $321.27 million, +5% on an organic basis, missing the consensus of $329.1 million.

  • Adjusted EPS improved to $0.56 compared to $0.45 in 2Q21, beating the consensus of $0.48.

  • The company reported an operating loss of $(28.19) million, compared to a profit of $38.54 million a year ago.

  • Industrial segment sales decreased by 9.6% Y/Y, and Aerospace segment sales increased by 26.2% Y/Y to $109.15 million.

  • Barnes' cash provided by operating activities year-to-date totaled $8.52 million, compared to $85.72 million a year ago. Free cash outflow of $(5) million.

  • Aerospace OEM backlog was at $753 million, up 5% from March 2022. The company expects to convert ~45% of this backlog to revenue over the next 12 months.

  • At the end of the quarter, the company's liquidity comprised $72 million in cash and approximately $521 million available under the revolving credit facility.

  • The company stated that its Industrial Segment, operational performance, and macroeconomic environment have deteriorated from the prior view. The first half's headwinds are now expected to persist deeper into the year and combine with softening European demand due to the impacts of the Russian invasion of Ukraine. As a result, the performance outlook for the second half has been meaningfully reduced.

  • Also Read: Barnes Picks Director Thomas Hook To Succeed Patrick Dempsey As CEO

  • FY22 Outlook: Barnes expects organic sales growth of 5% to 6% (prior expectation 8% - 10%).

  • It sees an adjusted operating margin of 11% to 12%, down from the prior view of 12.5% - 13.5%.

  • It expects Adjusted EPS of $1.90 - $2.05 (down from prior $2.20 - $2.40) vs. consensus of $2.16.

  • Price Action: B shares are trading lower by 7.02% at $32.26 on the last check Friday.

  • Photo Via Company

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