Barnes (US:B) ZACKSยท2024-07-29 16:51Core Viewpoint - Barnes Group Inc. reported adjusted earnings of 37 cents per share for Q2 2024, missing the Zacks Consensus Estimate of 39 cents, and reflecting a 36% year-over-year decrease [1] Financial Performance - Total sales reached $382 million, falling short of the Zacks Consensus Estimate of $399 million, but showing a 13% year-over-year increase with organic sales growth of 5% [2] - Industrial segment sales were $164 million, down 24% year over year, while organic sales increased by 3% [2] - Aerospace segment sales totaled $218 million, up 79% year over year, with organic sales increasing by 8% and acquisition-boosted sales contributing 75% [2] - Cost of sales increased by 14.9% year over year to $258.2 million, while selling and administrative expenses decreased by 6.4% to $82.7 million [3] - Adjusted operating income was $47.6 million, up 9.5% year over year, but the margin decreased by 40 basis points to 12.4% [3] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q2 were $65.9 million, down from $89.8 million at the end of 2023, while long-term debt decreased to $1.15 billion from $1.23 billion [4] - In the first half of 2024, net cash generated from operating activities was $3.1 million, a significant drop from $42.5 million in the same period last year [4] - Capital expenditures rose by 38.1% year over year to $29.9 million, resulting in a free cash outflow of $26.8 million compared to a free cash inflow of $20.9 million a year ago [4] - Shareholder dividends amounted to $16.2 million, nearly flat year over year [4] 2024 Outlook - The company expects total sales to increase by 10-12% year over year, with organic sales growth projected at 4-6% [5] - Adjusted operating margin is estimated to be between 12-14%, and adjusted EBITDA margin is projected at 20-22% [5] - Adjusted earnings are anticipated to be in the range of $1.55-$1.75 per share, with the consensus estimate at $1.72 per share [5] - Capital expenditure is projected to be between $55 million and $65 million, with adjusted free cash flow expected to be between $45 million and $55 million [5]