Morgan Advanced Materials Full Year 2023 Earnings: Misses Expectations

Morgan Advanced Materials (LON:MGAM) Full Year 2023 Results

Key Financial Results

• Revenue: UK£1.11b (flat on FY 2022).
• Net income: UK£46.6m (down 46% from FY 2022).
• Profit margin: 4.2% (down from 7.8% in FY 2022).
• EPS: UK£0.16 (down from UK£0.31 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Morgan Advanced Materials Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 20%.

The primary driver behind last 12 months revenue was the Thermal Products Division - Thermal Ceramics segment contributing a total revenue of UK£403.2m (36% of total revenue). Notably, cost of sales worth UK£994.4m amounted to 89% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling UK£70.4m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how MGAM's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Machinery industry in the United Kingdom.

Performance of the British Machinery industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

You should learn about the 4 warning signs we've spotted with Morgan Advanced Materials.

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