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nVent Electric Q1 Results Top Street Estimates, Raises FY22 Guidance

Benzinga · 04/29/2022 11:56
  • nVent Electric PLC (NYSE:NVT) reported first-quarter FY22 sales growth of 27% year-over-year to $695 million, +24% organically, beating the consensus of $625.66 million.
  • Segment sales: Enclosures $359 million (+30% Y/Y), Electrical & Fastening Solutions $188 million (+27% Y/Y), and Thermal Management $148 million (+19% Y/Y).
  • Adjusted EPS improved 16% Y/Y to $0.50, beating the consensus of $0.44.
  • The gross margin contracted by 250 bps to 35.6%. The operating income improved by 12% Y/Y to $90.1 million, and the margin contracted by 162 bps to 12.9%.
  • Segment income increased by 13% Y/Y to $110 million, and the margin was 15.9%, down by 180 bps.
  • nVent Electric generated cash flows from operations of $6.5 million compared to $49.9 million in 1Q21, and free cash flow usage was $2.7 million.
  • 2Q22 Outlook: nVent Electric expects sales to be up 13% - 15% and up 12% - 14 % on an organic basis.
  • It expects EPS on a GAAP basis of $0.43 - $0.45 and adjusted EPS of $0.52 - $0.54 (consensus $0.54).
  • FY22 Outlook: NVT expects reported sales growth of 11% - 13% (prior guidance 6% - 10%).
  • It expects EPS of $1.78 - $1.86 on a GAAP basis (prior guidance of $1.75 - $1.85) and adjusted EPS of $2.14 - $2.22 (prior $2.10 - $2.20), vs. consensus of $2.17.
  • Price Action: NVT shares traded higher by 2.23% at $35.25 on the last check Friday.