Atotech Ltd. (ATC) Misses Q1 EPS by 64c, Revenues Beat; Raises FY21 Guidance

Atotech Ltd. (NYSE: ATC) reported Q1 EPS of ($0.55), $0.64 worse than the analyst estimate of $0.09. Revenue for the quarter came in at $353 million versus the consensus estimate of $331.05 million.

• Generates first quarter revenue of $353 million, an increase of 25% over the prior year period, including chemistry organic revenue growth of 13%
• Reports a net loss of $72 million, primarily reflecting one-time costs associated with the Company’s recent refinancing
• Delivers adjusted EBITDA of $110 million, a 32% increase over the prior year period
• Reduces net leverage to 3.7x
• Raises guidance for full year 2021 organic revenue growth, which is now expected to be in the range of 11% to 13%, including full year chemistry organic revenue growth of approximately 9%
• Increases guidance for full year 2021 adjusted EBITDA1, which is now anticipated to be in the range of $415 million to $435 million, an increase of $10 million over the prior guidance at the mid-point

Geoff Wild, Atotech’s Chief Executive Officer said, “We are very pleased with our first quarter performance. As we lap the first quarter of the Covid-19 pandemic, we delivered strong revenue and EBITDA growth, driven by an acceleration in the secular trends that are fueling demand for our products. Whether it is the robust smartphone cycle, the increasing adoption of 5G, work-from-home and higher PC demand, or the electrification of automobiles, our comprehensive solutions address customer requirements and we continue to lead the market with our customer service approach.”

“Despite several external disruptions putting pressure on global supply chains this quarter, we feel confident about delivering strong revenue and earnings growth this year and are actively engaged in multiple initiatives to mitigate the impact of current supply chain shortages and disruptions.”

“I was also very pleased to have successfully completed our refinancing during the first quarter. We moved quickly to leverage our stronger balance sheet as a result of the IPO, as well as our positive business outlook, to significantly lower our cost of borrowing. The combination of healthy markets and an improved capital structure have Atotech well-positioned to generate meaningful free cash flow in 2021.”

For earnings history and earnings-related data on Atotech Ltd. (ATC) click here.

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