Barnes Group (NYSE: B) reported Q1 EPS of $0.71, $0.22 better than the analyst estimate of $0.49. Revenue for the quarter came in at $331 million versus the consensus estimate of $316.73 million.

• Sales of $331 million, down 12% from last year; Organic Sales down 8%
• Operating Income of $49.3 million; Adjusted Operating Income of $51.7 million, down 5%
• Operating Margin of 14.9%; Adjusted Operating Margin of 15.6%, up 110 bps
• GAAP EPS of $0.58; Adjusted EPS of $0.71, Unchanged from a Year Ago
• Maintains Solid Financial Position with Sufficient Liquidity
• 2020 Full Year Outlook Remains Suspended; Provides Second Quarter Expectation

“First quarter 2020 business performance unfolded ahead of our expectation, as record aerospace aftermarket sales and operating profit drove the results. However, during March, as the COVID-19 pandemic spread globally, we began to experience pressure in several of our end markets,” said Patrick J. Dempsey, President and Chief Executive Officer of Barnes Group Inc. “Proactive management actions in the current environment, with the safety and well-being of our employees as the highest priority, successfully kept our manufacturing locations operational to support our customers with the essential products and services we provide,” added Dempsey.

GUIDANCE:

Barnes Group sees Q2 2020 EPS of $0.20-$0.30, versus the consensus of $0.31.

2020 Outlook Remains Suspended

Barnes Group believes that the current environment does not allow for the forecast of performance with reasonable precision, and as such the Company continues to suspend its 2020 full year outlook. As the depth of the disruption and pace of recovery in our end markets become clearer, we will look to return to our practice of providing a current year outlook.

Correspondingly, the second quarter of 2020 is anticipated to be significantly impacted by the global shut down in several of the Company’s end markets. Based on our current view, we anticipate organic sales to be lower than last year’s second quarter by approximately 30%. Operating margin is expected to be between 8.5% and 10%. Adjusted earnings per share are anticipated to be in the range of $0.20 to $0.30. The Company believes that a recovery will commence in the third quarter, though the pace of the recovery is not readily determinable at the present time.

For earnings history and earnings-related data on Barnes Group (B) click here.