NORTH BETHESDA, Md. - ESAB Corporation (NYSE: ESAB), a premier industrial compounder, reported a robust first quarter for 2024, surpassing analyst expectations with an adjusted EPS of $1.20, which was $0.10 higher than the consensus estimate of $1.10.
The company also saw a revenue increase to $689.74 million, significantly beating the $654.74 million analyst forecast.
The company's first-quarter sales showed a 1% rise on a reported basis, with a 2% core organic growth before considering acquisitions and currency translation impacts compared to the same period last year. Adjusted EBITDA grew by 9%, reaching $123 million, with margins expanding by 140 basis points to 18.8%.
Shyam P. Kambeyanda, President and CEO of ESAB, attributed the strong performance to the "power of ESAB Business Excellence to drive growth and margin expansion." He also highlighted the company's strategic moves, including the completion of a bond offering and acquisitions aimed at diversifying and strengthening ESAB's portfolio in the Americas.
Looking ahead, ESAB has raised its full-year 2024 guidance, now expecting core adjusted EBITDA to be between $500 and $520 million and adjusted EPS to range from $4.75 to $4.95. This updated guidance is an improvement from the previous estimates of $495 to $515 million for core adjusted EBITDA and $4.65 to $4.85 for adjusted EPS. The new EPS guidance midpoint of $4.85 surpasses the analyst consensus of $4.83.
ESAB's recent acquisitions, including Sager S.A. and the soon-to-be-completed SUMIG Ltda, are expected to contribute to the company's growth, with Sager anticipated to generate approximately $10 million in sales for 2024.
The company remains committed to its strategy and long-term goals, with Kambeyanda expressing confidence in the outlook for the remainder of the year and the company's progress toward its 2028 objectives.
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