Raven Industries (RAVN) Misses Q4 EPS by 10c, Revenues Miss

March 22, 2021 4:34 PM EDT
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Price: $40.01 +0.83%

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Cost of sales: 48.68M

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Raven Industries (NASDAQ: RAVN) reported Q4 EPS of $0.01, $0.10 worse than the analyst estimate of $0.11. Revenue for the quarter came in at $80.08 million versus the consensus estimate of $88.65 million.

  • Consolidated net sales for the fourth quarter of fiscal 2021 were $80.1 million, down 6.6 percent versus the fourth quarter of fiscal 2020.
    • Applied Technology generated growth in both the OEM and aftermarket channels, which was more than offset by declines in Engineered Films and Aerostar. Improved end-market fundamentals drove strong growth for Applied Technology's best-in-class ag technology solutions.
    • In Engineered Films, the division's end-markets continued to face challenges related to the pandemic, resulting in lower sales volume.
    • Aerostar was impacted by unfavorable timing of government contracts, leading to a year-over-year decline in revenue.
  • Net income for the fourth quarter of fiscal 2021 was $0.3 million, or $0.01 per diluted share, compared to $3.3 million, or $0.09 per diluted share, in last year's fourth quarter.
    • The Company's investment in Raven Autonomy™ reduced net income attributable to Raven by $3.4 million, or $0.09 per diluted share, in the fourth quarter of fiscal 2021 compared to $2.3 million, or $0.06 per diluted share, in the prior year.

Fiscal 2022 Outlook:

"In fiscal 2021, we made key advances across our company and through our strategic platforms for growth," said Dan Rykhus, President and CEO. "In response to the pandemic, we identified four priorities for the year that included upholding the Raven Way, emphasizing cash flow from operations, protecting the core business and aggressively investing in Raven Autonomy™. Looking back on the year, I am proud of our team's ability to achieve these goals while managing our business through adverse economic conditions, supply chain constraints and changing our production processes to ensure the health and well-being of our team members. As we enter a new year, I have confidence that the lessons we have learned from these challenges will help our team drive growth in fiscal 2022 and beyond.

"In fiscal 2022, Applied Technology is expected to drive growth in revenue as the division leverages its industry-leading product portfolio and customer relationships. Order activity strengthened in the fourth quarter of fiscal 2021 and is building momentum through the first quarter of fiscal 2022. In addition, we are seeing strength in the agriculture industry as increasing commodity prices have created optimism in the ag market for the first time in nearly a decade. In Raven Autonomy™, we expect to deliver AutoCart® systems in advance of the fall harvest and commercialize the Dot® Power Platform. We will continue to aggressively invest in Raven Autonomy™ as we build the foundation for a step-change in long-term growth.

"In Engineered Films, we have experienced improving conditions over the past few months. Overall, we expect to achieve market share gains and for end-market conditions to continue to improve as the year progresses, driving meaningful year-over-year revenue growth. In fiscal 2022, we are also focused on completing an acquisition to supplement the strategy within Engineered Films of delivering high-value films and composites.

"In Aerostar, I am very proud of all we have achieved over the last eight years as Alphabet's design partner for Loon. The relationship helped deliver connectivity to rural areas of the world, but it also advanced Raven's stratospheric platform technological capabilities. Looking forward, we remain focused on bringing our stratospheric balloon platform to U.S. government agencies, providing a proprietary solution for a variety of applications. We have achieved key milestones in recent months, and momentum surrounding our technology continues to grow. In fiscal 2022, the division expects to continue to develop the capabilities of its stratospheric and radar technology while executing on government contracts.

"Fiscal 2022 will be an exciting year for our company as we build out each of our strategic platforms for growth while leveraging the strength of our underlying businesses. Substantial order activity and improving market fundamentals provide confidence in our ability to drive strong year-over-year growth in Applied Technology and Engineered Films. As we execute on these opportunities, we will remain focused on aggressively investing to advance Raven Autonomy™, Raven Composites™ and Raven Thunderhead while making significant progress on our multi-year plan to drive a step-change in our long-term growth," concluded Rykhus.

For earnings history and earnings-related data on Raven Industries (RAVN) click here.

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