- Barclays analyst Julian Mitchell lowered the price target on nVent Electric PLC (NYSE:NVT) to $48 (an upside of 33.1%) from $51 and maintained an Overweight rating on the shares post the Q4 results.
- He believes the company's cash flow and deployment are being underappreciated.
- CL King analyst David Silver maintains a Neutral rating on nVent Electric following the quarterly results.
- Silver mentions that above-forecast EPS results reflected strong organic growth, partly offset by margin-depressing inflation in labor, metal, and logistics costs.
- The analyst adds that the electrical products industry continues to shift more decisively towards higher secular growth tied to connectivity, protection, and efficiency.
- Recently, the company reported fourth-quarter sales growth of 28% year-over-year to $669 million, +24% on an organic basis, beating the consensus of $ $608.39 million.
- Adjusted EPS improved by 16% Y/Y to $0.50, beating the consensus of $0.48.
- Q4 operating income was $89 million, up from $74 million in 4Q20, and on an adjusted basis, segment income was $110 million, up from $97 million. Adjusted margin contracted by 210 bps to 16.5%.
- For FY21, the company reported a free cash flow of $334 million, 100% conversion of adjusted net income.
- FY22 Outlook: nVent Electric expects reported sales growth of 6% to 10% and Organic growth of 6% to 9%.
- It expects EPS of $1.75 to $1.85; and Adjusted EPS of $2.10 to $2.20, versus $$2.19 consensus.
- Price Action: NVT shares are closed higher by 3.58% at $35.85 on Wednesday.
