Exponent Reports Second Quarter 2024 Financial Results
Exponent, Inc. (Nasdaq: EXPO) reported its Q2 2024 financial results, showing flat total revenues at $140.5 million and a 2% increase in revenues before reimbursements to $132.4 million. Net income grew 14% to $29.2 million, or $0.57 per diluted share. EBITDA increased to $39.9 million, representing 30.2% of revenues before reimbursements. The company's engineering and scientific segment, accounting for 84% of revenues, grew 4% in Q2. Despite challenges in consumer electronics and chemicals sectors, Exponent saw growth in transportation, utilities, and medical device sectors. The company raised its full-year 2024 guidance, expecting low to mid-single digit growth in revenues before reimbursements and EBITDA to be 27.5% to 28.0% of revenues before reimbursements.
Exponent, Inc. (Nasdaq: EXPO) ha riportato i risultati finanziari per il secondo trimestre del 2024, mostrando entrate totali stabili a 140,5 milioni di dollari e un aumento del 2% delle entrate prima dei rimborsi a 132,4 milioni di dollari. Il reddito netto è cresciuto del 14% arrivando a 29,2 milioni di dollari, ovvero 0,57 dollari per azione diluita. L'EBITDA è aumentato a 39,9 milioni di dollari, rappresentando il 30,2% delle entrate prima dei rimborsi. Il segmento ingegneria e scientifico dell'azienda, che rappresenta l'84% delle entrate, è cresciuto del 4% nel secondo trimestre. Nonostante le sfide nei settori dell'elettronica di consumo e dei prodotti chimici, Exponent ha registrato una crescita nei settori dei trasporti, delle utilities e dei dispositivi medici. L'azienda ha aumentato le previsioni per l'intero anno 2024, prevedendo una crescita a una cifra bassa o media nelle entrate prima dei rimborsi e un EBITDA compreso tra il 27,5% e il 28,0% delle entrate prima dei rimborsi.
Exponent, Inc. (Nasdaq: EXPO) reportó sus resultados financieros del segundo trimestre de 2024, mostrando ingresos totales estables de 140,5 millones de dólares y un aumento del 2% en los ingresos antes de reembolsos a 132,4 millones de dólares. Los ingresos netos crecieron un 14% alcanzando los 29,2 millones de dólares, o 0,57 dólares por acción diluida. El EBITDA aumentó a 39,9 millones de dólares, lo que representa el 30,2% de los ingresos antes de reembolsos. El segmento de ingeniería y ciencias de la compañía, que representa el 84% de los ingresos, creció un 4% en el segundo trimestre. A pesar de los desafíos en los sectores de electrónica de consumo y productos químicos, Exponent vio crecimiento en los sectores de transporte, servicios públicos y dispositivos médicos. La empresa elevó su pronóstico para todo el año 2024, esperando crecimiento bajo a medio de un solo dígito en los ingresos antes de reembolsos y que el EBITDA sea del 27,5% al 28,0% de los ingresos antes de reembolsos.
Exponent, Inc. (Nasdaq: EXPO)는 2024년 2분기 재무 결과를 보고하며 총 수익이 안정적하게 1억 4050만 달러를 기록하고 환급 전 수익이 2% 증가하여 1억 3240만 달러에 달한다고 발표했습니다. 순이익은 14% 증가하여 2920만 달러, 즉 희석 주당 0.57달러에 이릅니다. EBITDA는 3990만 달러로 증가하여 환급 전 수익의 30.2%를 차지합니다. 회사의 엔지니어링 및 과학 부문은 수익의 84%를 차지하며 2분기에 4% 성장했습니다. 소비자 전자제품 및 화학 부문에서의 도전에도 불구하고 Exponent는 운송, 공공 서비스 및 의료 기기 부문에서 성장을 보았습니다. 회사는 2024년 전체 연간 전망을 상향 조정하며, 환급 전 수익에서 낮은 검은 수치 성장과 EBITDA가 환급 전 수익의 27.5%에서 28.0% 범위를 유지할 것으로 기대하고 있습니다.
Exponent, Inc. (Nasdaq: EXPO) a annoncé ses résultats financiers du deuxième trimestre 2024, affichant des revenus totaux stables à 140,5 millions de dollars et une augmentation de 2% des revenus avant remboursements à 132,4 millions de dollars. Le bénéfice net a augmenté de 14% pour atteindre 29,2 millions de dollars, soit 0,57 dollar par action diluée. L'EBITDA a augmenté à 39,9 millions de dollars, représentant 30,2% des revenus avant remboursements. Le secteur de l'ingénierie et des sciences de l'entreprise, représentant 84% des revenus, a enregistré une croissance de 4% au cours du deuxième trimestre. Malgré les défis dans les secteurs de l'électronique grand public et des produits chimiques, Exponent a connu une croissance dans les secteurs des transports, des services publics et des dispositifs médicaux. L'entreprise a revu à la hausse ses prévisions pour l'ensemble de l'année 2024, s'attendant à une croissance à un chiffre faible à moyen des revenus avant remboursements et à un EBITDA de 27,5% à 28,0% des revenus avant remboursements.
Exponent, Inc. (Nasdaq: EXPO) hat die Finanzdaten für das zweite Quartal 2024 veröffentlicht und dabei stabile Gesamterlöse von 140,5 Millionen US-Dollar gemeldet sowie einen 2% Anstieg der Erlöse vor Erstattungen auf 132,4 Millionen US-Dollar. Der Nettogewinn wuchs um 14% auf 29,2 Millionen US-Dollar, oder 0,57 US-Dollar pro verwässerter Aktie. Der EBITDA stieg auf 39,9 Millionen US-Dollar, was 30,2% der Erlöse vor Erstattungen entspricht. Der Ingenieur- und Wissenschaftsbereich des Unternehmens, der 84% der Erlöse ausmacht, wuchs im 2. Quartal um 4%. Trotz der Herausforderungen in der Verbraucherelektronik und in der Chemiebranche verzeichnete Exponent Wachstum in den Bereichen Transport, Versorgungsunternehmen und Medizintechnik. Das Unternehmen erhöhte seine Prognose für das Gesamtjahr 2024 und erwartet ein niedriges bis mittleres einstelliges Wachstum bei den Erlösen vor Erstattungen und einen EBITDA von 27,5% bis 28,0% der Erlöse vor Erstattungen.
- Net income increased by 14% to $29.2 million in Q2 2024
- EBITDA margin expanded to 30.2% of revenues before reimbursements in Q2 2024
- Engineering and scientific segment grew 4% in Q2 2024
- Company raised full-year 2024 guidance
- Quarterly cash dividend of $0.28 per share announced
- Total revenues were flat year-over-year in Q2 2024
- Environmental and health segment revenues decreased 4% in Q2 2024
- Ongoing headwinds in consumer electronics and chemicals sectors
Insights
Exponent's Q2 2024 results reveal a company navigating challenges while maintaining profitability. The 14% increase in net income to
The company's ability to grow its reactive business in the mid-single digits, driven by demand in transportation, utilities and medical device sectors, demonstrates resilience in the face of headwinds in consumer electronics and chemicals. This diversification strategy appears to be paying off.
Exponent's strong cash position of
However, investors should note the potential impact of ongoing sector-specific challenges and the high bar set by the previous year's performance. The company's ability to capitalize on emerging opportunities in life sciences, renewables and transportation will be important for sustaining growth in the long term.
Exponent's Q2 results offer intriguing insights into broader market trends. The company's performance across various sectors provides a snapshot of the current industrial landscape:
- The mid-single-digit growth in reactive business, particularly in transportation, utilities and medical devices, suggests ongoing innovation and regulatory scrutiny in these areas.
- Headwinds in consumer electronics may indicate a slowdown in this sector, possibly due to market saturation or economic uncertainties.
- The challenges in the chemicals sector could reflect broader industry trends, potentially related to environmental regulations or supply chain issues.
Exponent's focus on areas like renewables, infrastructure resilience and electrification aligns with major global trends. This positioning could be advantageous as industries undergo transformations driven by technological advancements and sustainability concerns.
The company's ability to maintain a high utilization rate of
For investors, Exponent's performance and outlook provide valuable indicators of broader market dynamics and potential growth areas in the engineering and scientific consulting space.
MENLO PARK, Calif., July 25, 2024 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the second quarter of fiscal year 2024 ended June 28, 2024.
“We are pleased with the outcomes of efforts to align our operating model with market demand, evidenced by net income growth of
“We are encouraged by the market opportunities in this era of accelerating transformation across industries, from groundbreaking technology and data applications in life sciences, to renewables and infrastructure resilience in the energy sector, and electrification and automation of transportation. Exponent remains well positioned to support our clients with vital insights for current challenges, while preparing the path for future innovations,” Dr. Corrigan continued.
Second Quarter Financial Results
Total revenues and revenues before reimbursements for the second quarter of 2024 were approximately flat at
Net income increased to
EBITDA1 increased to
Year-to-Date Financial Results
Total revenues and revenues before reimbursements for the first half of 2024 increased
Net income was
EBITDA1 increased to
In a separate press release today, Exponent announced its quarterly cash dividend of
Business Overview
Exponent’s engineering and other scientific segment represented
Exponent’s environmental and health segment represented
Business Outlook
“Our ability to strategically manage resources with market demand drove
For the third quarter of 2024, as compared to the same period one year prior, Exponent anticipates:
- Revenues before reimbursements to be approximately flat; and,
- EBITDA1 to be
26.75% to27.5% of revenues before reimbursements.
For the fiscal year 2024 we are raising our revenue and margin guidance. Exponent anticipates:
- Revenues before reimbursements to grow in the low to mid-single digits; and,
- EBITDA1 to be
27.5% to28.0% of revenues before reimbursements.
“Exponent thrives in the complexity that abounds in products, technologies and regulations. In this environment of relentless innovation in safety-critical applications, we are focused on fueling the growth engines of the future through expanded capabilities, recruitment of top talent, and development of our exceptional team,” Dr. Corrigan concluded.
Today's Conference Call Information
Exponent will discuss its financial results in more detail on a conference call today, Thursday, July 25, 2024, starting at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. The audio of the conference call is available by dialing (844) 481-2781 or (412) 317-0672. A live webcast of the call will be available on the Investor Relations section of the Company's website at www.exponent.com/investors. For those unable to listen to the live webcast, a replay of the call will also be available on the Exponent website, or by dialing (877) 344-7529 or (412) 317-0088 and entering passcode 2296670#.
Use of non-GAAP Financial Measures 1
EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation, and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income, and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present, and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP.
Exponent has provided its outlook regarding EBITDA as a percentage of revenues before reimbursements. The Company has not reconciled this non-GAAP financial measure to the corresponding GAAP financial measure because guidance for the various reconciling items is not provided and the Company is unable to estimate with reasonable certainty the effect of these items without unreasonable effort. For example, the Company is unable to estimate with reasonable certainty the impact of equity awards on Exponent’s taxes without unreasonable effort. These items are uncertain, depend on various factors, and may have a material effect on Exponent’s results computed in accordance with GAAP. A reconciliation between the historical GAAP and non-GAAP financial measures presented in this release is provided in the financial tables at the end of this release.
About Exponent
Exponent brings together 90+ technical disciplines and 950+ consultants to help our clients navigate the increasing complexity of more than a dozen industries, connecting decades of pioneering work in failure analysis to develop solutions for a safer, healthier, more sustainable world.
Exponent's consultants deliver the highest value by leveraging multidisciplinary expertise and resources from across Exponent's offices in North America, Asia, and Europe. Exponent's consultants, laboratories, databases, and computing resources work seamlessly together around the globe, enabling us to produce the breakthrough insights needed to help multinational companies, startups, law firms, insurance companies, governments, and society respond to incidents and push their products and processes forward.
Exponent may be reached at (888) 656-EXPO, info@exponent.com, or www.exponent.com.
Forward Looking Statements
This news release contains, and incorporates by reference, certain “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules promulgated pursuant to the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended) that are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. When used in this document and in the documents incorporated herein by reference, the words “intend,” “anticipate,” “believe,” “estimate,” “expect” and similar expressions, as they relate to the Company or its management, identify such forward-looking statements. Such statements reflect the current views of the Company or its management with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements. Factors that could cause or contribute to such material differences include the possibility that the demand for our services may decline as a result of changes in generally applicable and industry-specific economic conditions, the timing of engagements for our services, the effects of competitive services and pricing, the absence of backlog related to our business, our ability to attract and retain key employees, the effect of tort reform and government regulation on our business, and liabilities resulting from claims made against us. Additional risks and uncertainties are discussed in our Annual Report on Form 10-K under the heading “Risk Factors” and elsewhere in the report. The inclusion of such forward-looking information should not be regarded as a representation by the Company or any other person that the future events, plans, or expectations contemplated by the Company will be achieved. The Company undertakes no obligation to release publicly any updates or revisions to any such forward-looking statements.
Source: Exponent, Inc.
| EXPONENT, INC. | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| For the Three and Six Months Ended June 28, 2024 and June 30, 2023 | |||||||||||||
| (unaudited) | |||||||||||||
| (in thousands, except per share data) | |||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||
| June 28, | June 30, | June 28, | June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Revenues | |||||||||||||
| Revenues before reimbursements | $ | 132,434 | $ | 129,653 | $ | 269,641 | $ | 258,358 | |||||
| Reimbursements | 8,102 | 10,568 | 15,828 | 22,172 | |||||||||
| Revenues | 140,536 | 140,221 | 285,469 | 280,530 | |||||||||
| Operating expenses | |||||||||||||
| Compensation and related expenses | 79,466 | 82,836 | 169,793 | 167,017 | |||||||||
| Other operating expenses | 11,185 | 10,305 | 21,716 | 19,866 | |||||||||
| Reimbursable expenses | 8,102 | 10,568 | 15,828 | 22,172 | |||||||||
| General and administrative expenses | 6,039 | 6,637 | 11,675 | 12,480 | |||||||||
| 104,792 | 110,346 | 219,012 | 221,535 | ||||||||||
| Operating income | 35,744 | 29,875 | 66,457 | 58,995 | |||||||||
| Other income | |||||||||||||
| Interest income, net | 2,231 | 1,593 | 4,857 | 3,363 | |||||||||
| Miscellaneous income (expense), net | 1,707 | 4,785 | 8,791 | 9,433 | |||||||||
| 3,938 | 6,378 | 13,648 | 12,796 | ||||||||||
| Income before income taxes | 39,682 | 36,253 | 80,105 | 71,791 | |||||||||
| Income taxes | 10,455 | 10,505 | 20,736 | 16,919 | |||||||||
| Net income | $ | 29,227 | $ | 25,748 | $ | 59,369 | $ | 54,872 | |||||
| Net income per share: | |||||||||||||
| Basic | $ | 0.57 | $ | 0.50 | $ | 1.16 | $ | 1.07 | |||||
| Diluted | $ | 0.57 | $ | 0.50 | $ | 1.15 | $ | 1.06 | |||||
| Shares used in per share computations: | |||||||||||||
| Basic | 51,111 | 51,255 | 51,059 | 51,193 | |||||||||
| Diluted | 51,517 | 51,692 | 51,475 | 51,694 | |||||||||
| EXPONENT, INC. | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| June 28, 2024 and December 29, 2023 | ||||||||||
| (unaudited) | ||||||||||
| (in thousands) | ||||||||||
| June 28, | December 29, | |||||||||
| 2024 | 2023 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 203,262 | $ | 187,150 | ||||||
| Accounts receivable, net | 165,870 | 167,360 | ||||||||
| Prepaid expenses and other assets | 22,195 | 25,022 | ||||||||
| Total current assets | 391,327 | 379,532 | ||||||||
| Property, equipment and leasehold improvements, net | 73,025 | 75,318 | ||||||||
| Operating lease right-of-use asset | 71,556 | 24,600 | ||||||||
| Goodwill | 8,607 | 8,607 | ||||||||
| Other assets | 164,662 | 158,720 | ||||||||
| $ | 709,177 | $ | 646,777 | |||||||
| Liabilities and Stockholders' Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable and accrued liabilities | $ | 22,418 | $ | 22,125 | ||||||
| Accrued payroll and employee benefits | 90,728 | 111,773 | ||||||||
| Deferred revenues | 13,775 | 21,709 | ||||||||
| Operating lease liability | 4,903 | 6,302 | ||||||||
| Total current liabilities | 131,824 | 161,909 | ||||||||
| Other liabilities | 113,747 | 106,824 | ||||||||
| Operating lease liability | 70,393 | 21,959 | ||||||||
| Total liabilities | 315,964 | 290,692 | ||||||||
| Stockholders' equity: | ||||||||||
| Common stock | 66 | 66 | ||||||||
| Additional paid-in capital | 338,734 | 321,448 | ||||||||
| Accumulated other comprehensive loss | (3,173 | ) | (2,977 | ) | ||||||
| Retained earnings | 603,373 | 574,082 | ||||||||
| Treasury stock, at cost | (545,787 | ) | (536,534 | ) | ||||||
| Total stockholders' equity | 393,213 | 356,085 | ||||||||
| $ | 709,177 | $ | 646,777 | |||||||
| EXPONENT, INC. | |||||||||||||||||
| EBITDA and EBITDAS (1) | |||||||||||||||||
| For the Three and Six Months Ended June 28, 2024 and June 30, 2023 | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| (in thousands) | |||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||
| June 28, | June 30, | June 28, | June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net Income | $ | 29,227 | $ | 25,748 | $ | 59,369 | $ | 54,872 | |||||||||
| Add back (subtract): | |||||||||||||||||
| Income taxes | 10,455 | 10,505 | 20,736 | 16,919 | |||||||||||||
| Interest income, net | (2,231 | ) | (1,593 | ) | (4,857 | ) | (3,363 | ) | |||||||||
| Depreciation and amortization | 2,486 | 2,186 | 4,810 | 4,174 | |||||||||||||
| EBITDA (1) | 39,937 | 36,846 | 80,058 | 72,602 | |||||||||||||
| Stock-based compensation | 5,577 | 5,223 | 12,917 | 12,286 | |||||||||||||
| EBITDAS (1) | $ | 45,514 | $ | 42,069 | $ | 92,975 | $ | 84,888 | |||||||||
| (1) EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. | |||||||||||||||||
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