An Eye on Earnings Report: Apergy Corporation (NYSE: APY)

THE WOODLANDS, Texas, May 16, 2020 – Shares of Apergy Corporation (NYSE: APY) showed the bearish trend with a lower momentum of -2.31% to $8.45. The company traded total volume of 1.576M shares as contrast to its average volume of 2.19M shares. The company has a market value of $654.54M and about 77.46M shares outstanding.

Apergy Corporation (NYSE: APY) reported net income of $13.60M in the third quarter of 2019, contrast to net income of $25.30M in the third quarter of 2018. Adjusted net income was $20.90M in the third quarter of 2019, contrast to adjusted net income of $28.60M in the third quarter of 2018.

Revenue was $278.40M in the third quarter of 2019, a decrease of $38.10M, or 12%, contrast to $316.50M in the third quarter of 2018, and a decrease of $27.70M, or 9%, contrast to $306.10M in the second quarter of 2019.

Adjusted EBITDA was $66.50M in the third quarter of 2019, a decrease of $11.80M, or 15%, contrast to $78.40M in the third quarter of 2018, and a decrease of $8.00M, or 11%, contrast to $74.60M in the second quarter of 2019. Adjusted EBITDA margin was 23.9% in the third quarter of 2019.

Cash from operating activities was $64.10M in the third quarter of 2019, contrast to $34.30M in the third quarter of 2018, and $39.40M in the second quarter of 2019. The free cash flow conversion ratio from adjusted EBITDA was 83% in the third quarter of 2019, contrast to 26% in the third quarter of 2018, and 35% in the second quarter of 2019. In the third quarter of 2019, Apergy used available cash to fund a technology acquisition and repay $25.0M of term loan debt. Since the completion of the spin-off on May 9, 2018, Apergy has repaid $120.0M of term loan debt.

Production & Automation Technologies:

In the third quarter of 2019, Production & Automation Technologies revenue reduced $12.20M, or 5%, sequentially, driven by lower customer spending for both artificial lift products and other production equipment. Segment operating profit increased $0.90M, or 4%, and adjusted segment EBITDA increased $1.60M, or 3%, sequentially, because of strong cost reduction actions and higher than expected productivity in the quarter.

On a year-over-year basis, Production & Automation Technologies revenue reduced $17.70M, or 7%, because of lower artificial lift revenue in North America, partially offset by higher international and digital revenue. Segment operating profit reduced $2.40M, or 10%, and adjusted segment EBITDA increased $1.90M, or 4%, because of strong cost discipline and higher than expected productivity in the quarter.

Revenue from digital products was $34.50M in the third quarter of 2019, a boost of $0.20M, contrast to $34.30M in the second quarter of 2019, and a boost of $3.20M, or 10%, contrast to $31.20M in the third quarter of 2018.

Drilling Technologies:

In the third quarter of 2019, Drilling Technologies revenue reduced by $15.50M, or 22%, sequentially, driven by the decline in U.S. drilling activity and customer destocking of polycrystalline diamond cutter inventories, as well as the push-out of diamond bearings orders because of capital discipline by our oilfield services customers. Sequentially, the average worldwide and U.S. rig counts declined 1% and 7%, respectively. Segment operating profit reduced $10.50M and adjusted segment EBITDA reduced by $10.00M, or 38%, because of the lower volumes.

On a year-over-year basis, Drilling Technologies revenue reduced $20.40M, or 27%, because of lower U.S. drilling activity and customer destocking of polycrystalline diamond cutter inventories, as well as the push-out of diamond bearings orders because of capital discipline by our oilfield services customers. Year-over-year, the average worldwide and U.S. rig counts declined 7% and 12%, respectively. Year-over-year, segment operating profit reduced $12.40M, or 47%, and adjusted segment EBITDA reduced by $12.40M, or 43%, as a result of the lower volume.

The Company offered net profit margin of 6.90% while its gross profit margin was 32.80%. ROE was recorded as 7.30%. The stock, as of recent close, has shown the weekly downbeat performance of -14.21% which was maintained at -74.99% in this year.

Robert  Campbell

I am Robert Campbell and I’m passionate about capitalism and news with over 4 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind Liberty Headquarters with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of free markets, conservative news and gun rights category. Address: 3516 Candlelight Drive, Houston, TX 77042, USA Phone: (+1) 281-430-8376 Email: robertcampbell@libertyheadquarters.com

Robert  Campbell

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