Earnings Review and Free Research Report: Raven’s Sales Surged 28.1%; EPS Rocketed 92%

Research Desk Line-up: Donaldson Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 13, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Raven Industries, Inc. (NASDAQ: RAVN) (“Raven”), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=RAVN, following the Company’s release of its second quarter fiscal 2018 financial results on August 23, 2017. The industrial products maker beat earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Diversified Machinery industry. Pro-TD has currently selected Donaldson Company, Inc. (NYSE: DCI) for due-diligence and potential coverage as the Company announced on September 07, 2017, its financial results for Q4 FY17 and full year FY17. Register for a free membership today, and be among the early birds that get access to our report on Donaldson when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on RAVN; also brushing on DCI. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the second quarter of fiscal 2018 that ended July 31, 2017, Raven’s net sales were $86.6 million, up 28.1% versus sales of $67.60 million in Q2 FY17. All of Company’s three divisions drove significant growth y-o-y in the reported quarter.

During Q2 FY18, Raven’s operating income was $11.7 million versus operating income of $6.7 million in Q2 FY17, increasing 74.7% on a y-o-y basis. The Company’s operating margin increased 360 basis points y-o-y from 9.9% of net sales to 13.5% of net sales. The significant improvement in profitability was principally driven by strong operating leverage on higher sales volume.

Raven’s net income for Q2 FY18 was $8.2 million, or $0.23 per diluted share, versus net income of $4.5 million, or $0.12 per diluted share, in Q2 FY17. The Company noted that all three divisions made significant contributions to the substantial growth in diluted earnings per share. Raven’s earnings beat Wall Street’s expectations of $.22 per share.

Raven’s Segment Results

Applied Technology – During Q2 FY18, net sales for Applied Technology were $28.4 million, up 25.4% versus Q2 FY17 net sales of $22.67. The Company noted that new product sales, expanded OEM relationships, and higher sales of direct injection systems continued to drive y-o-y growth.

For the reported quarter, the division’s operating income was $6.64 million, up 28.3% compared to Q2 FY17 operating income of $5.17 million, driven primarily by higher sales volume and improved operating leverage. The division’s operating margin increased from 22.8% in Q2 FY17 to 23.3% in Q2 FY18.

Engineered Films – During Q2 FY18, net sales for Engineered Films were $49.0 million, up 33.8% compared to sales of $22.67 million. The segment’s volume, measured in pounds sold, increased 35.0% on a y-o-y basis. Consistent with the past three-quarters, the increase in sales was driven by markedly higher sales into the Geomembrane market, with the Industrial and Agriculture markets also significantly contributing to the division’s growth.

In the reported quarter, operating income for the division was $9.55 million, up 43.4% versus operating income of $6.666 million. The y-o-y increase in operating income was principally driven by strong operating leverage and higher sales volume. The division’s operating margin increased 130 basis points y-o-y from 18.2% to 19.5%, driven by improved capacity utilization and continued spending discipline.

Aerostar – During Q2 FY18, net sales in the Aerostar segment grew 11.3% to $9.4 million from $8.42 million in Q2 FY17. The y-o-y increase in sales was primarily driven by growth in the stratospheric balloon platform. The segment’s operating income in the reported quarter was $1.4 million versus an operating loss of $0.3 million in the previous year’s quarter. Adjustments in operating expenses while focusing on strategic research and development spending contributed to the improved financial performance.

Balance Sheet and Cash Flow

At the end of Q2 FY18, Raven’s cash and cash equivalents totaled $55.2 million, up $4.7 million versus the prior quarter. The Company’s net working capital as a percentage of annualized net sales improved 300 basis points y-o-y from 27.4% in Q2 FY17 to 24.4% in the reported quarter. The decrease in net working capital percentage was the result of higher payables as well as managing inventory and receivables efficiently with the substantial increase in sales versus the prior year.

Stock Performance

On Tuesday, September 12, 2017, the stock closed the trading session at $29.40, marginally rising 0.68% from its previous closing price of $29.20. A total volume of 195.82 thousand shares have exchanged hands, which was higher than the 3-month average volume of 172.41 thousand shares. Raven Industries’ stock price surged 1.03% in the last six months and 27.66% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 16.67%. The stock is trading at a PE ratio of 34.88 and has a dividend yield of 1.77%. At Tuesday’s closing price, the stock’s net capitalization stands at $1.06 billion.

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