ESAB CORP Reports Positive Financial Results for Fourth Quarter of FY2022
March 19, 2023
Earnings Overview
On December 31, 2022, ESAB CORP ($NYSE:ESAB) reported its fourth quarter FY2022 financial results, which ended on that date. Total revenue was USD 60.7 million, representing a 54.0% year-over-year increase. Net income for the quarter was USD 664.1 million, a 6.4% increase from the same period in the previous year.
Transcripts Simplified
All participants will be in a listen-only mode. After the presentation, we will conduct a question-and-answer session. (Operator Instructions) I would now like to turn the conference over to Tom Crawford, Chief Executive Officer. Please go ahead, sir. Thanks, operator. Thank you all for joining us today.
Additionally, we saw strong growth in our Asia Pacific region as well. We continue to focus on driving margin expansion through cost controls and operational improvements. Looking ahead, we remain focused on driving profitable growth and enhancing shareholder value through our disciplined approach to operations and capital allocation. We are also actively evaluating opportunities to drive additional value creation through investments in our core business and strategic acquisitions. We remain confident in our ability to continue to deliver strong financial performance for our shareholders in the coming quarters. Thank you for your time today and we look forward to discussing our results further during the Q&A session. Operator, please open the line for questions.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Esab Corp. More…
| Total Revenues | Net Income | Net Margin |
| 2.59k | 223.75 | 9.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Esab Corp. More…
| Operations | Investing | Financing |
| 214.36 | -184.42 | 7.56 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Esab Corp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.75k | 2.37k | 22.47 |
Key Ratios Snapshot
Some of the financial key ratios for Esab Corp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.9% | 12.8% | 13.6% |
| FCF Margin | ROE | ROA |
| 6.7% | 17.2% | 5.9% |
Share Price
Their stock opened at $60.3 and closed at $61.7, up by 3.6% from last closing price of 59.5. The company’s performance was driven by strong demand for its welding and cutting products. The company’s strong performance in the North American market was bolstered by growth in the industrial, light fabrication and aerospace industries.
In addition, ESAB’s European business experienced strong demand, particularly in the automotive and consumer electronics industries. Overall, this positive financial performance reflects the successful execution of ESAB’s strategic plans, as well as its commitment to delivering quality products and service to customers. These positive results reinforce the confidence investors have in ESAB CORP’s management team and its ability to deliver consistent and long-term growth. Going forward, the company will continue to focus on innovation, cost efficiency and customer service to ensure that it remains competitive in the welding and cutting industry. Live Quote…
Analysis
At GoodWhale, we recently performed an analysis of ESAB CORP‘s fundamentals. Based on our Risk Rating, ESAB CORP is a medium risk investment in terms of financial and business aspects. During the analysis, we detected 1 risk warning in balance sheet. If you’re interested in learning more about this risk warning, register with us to check it out. More…
Peers
ESAB Corp is in competition with Nordson Corp, Graco Inc, and Lincoln Electric Holdings Inc. All four companies are fighting for market share in the welding and cutting industry. ESAB Corp has been a strong competitor in this industry for many years, but the other three companies are also well-established and have a large customer base.
– Nordson Corp ($NASDAQ:NDSN)
Nordson Corporation is a publicly traded company with a market capitalization of $12.47 billion as of 2022. The company has a return on equity of 18.05%. Nordson Corporation is engaged in the design, manufacture and sale of engineered products and solutions for industrial and commercial customers worldwide. The company’s product portfolio includes equipment and solutions for the application of adhesives, coatings, Sealants, elastomers and biomaterials; and advanced technology products for the electronics, semiconductor, medical device and packaging industries. Nordson Corporation is headquartered in Westlake, Ohio, United States.
– Graco Inc ($NYSE:GGG)
Graco Inc is a publicly traded company with a market capitalization of $11.44 billion as of 2022. The company has a return on equity of 19.47%. Graco Inc is a leading manufacturer of fluid handling equipment and systems for a variety of applications. The company’s products are used in a wide range of industries, including automotive, construction, food and beverage, and chemical processing.
– Lincoln Electric Holdings Inc ($NASDAQ:LECO)
Lincoln Electric Holdings Inc. is an American multinational and a leading global manufacturer of welding products, arc welding systems, robotic welding systems, plasma and oxy-fuel cutting equipment. The company operates in four segments: Americas Welding, International Welding, Harris Products Group, and Lincoln Consolidated. The company has a market cap of $8.13B and a ROE of 37.76%.
Summary
ESAB CORP had a strong fourth quarter of FY2022, ending on December 31, 2022. Total revenue increased by 54.0% year-over-year, while net income increased by 6.4%. This positive financial performance had a positive impact on the stock price with shares rising the same day. Investors should take notice of ESAB CORP’s strong financial performance and may want to consider investing in the company given the potential for further growth.
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