Barnes Group (B) Q1 Earnings & Revenues Surpass Estimates

Core Viewpoint - Barnes Group Inc. reported adjusted earnings of 38 cents per share for Q1 2024, exceeding the Zacks Consensus Estimate of 35 cents, but reflecting a 19% decline year over year due to rising costs of sales [1] Financial Performance - Total revenues reached $430.6 million, surpassing the Zacks Consensus Estimate of $425 million, marking a 28.4% increase year over year with organic sales growth of 4% [2] - Industrial segment revenues were $209 million, down 4% year over year, with organic sales also declining by 4% [2] - Aerospace segment sales totaled $221 million, up 89% year over year, with organic sales increasing by 19% and acquisition-boosted sales rising by 70% [2] Margin Profile - Cost of sales increased by 32.6% year over year to $300.1 million, while selling and administrative expenses rose by 5.9% to $90.9 million [3] - Adjusted operating income was $51.1 million, reflecting a 37.4% year-over-year increase, with the operating margin improving by 80 basis points to 11.9% [3] Balance Sheet & Cash Flow - At the end of Q1 2024, cash and cash equivalents were $81.6 million, down from $89.8 million at the end of 2023, while long-term debt increased to $1.29 billion [4] - The company used net cash of $2.3 million from operating activities in Q1 2024, compared to $32.2 million generated in the same period last year [4] - Capital expenditures totaled $12.8 million, up 17.4% year over year, with free cash outflow of $15.2 million compared to a free cash inflow of $21.3 million a year ago [4] 2024 Outlook - For 2024, total sales are expected to increase by 13-16% year over year, with organic sales projected to grow by 5-8% [5] - Adjusted operating margin is estimated to be between 12-14%, and adjusted EBITDA margin is projected at 20-22% [5] - GAAP earnings are forecasted to be between $1.08 and $1.28 per share, while adjusted earnings are expected to range from $1.62 to $1.82 [5]