What happened
Shares of Janus International Group (JBI 2.39%) -- which makes products like smart door locks for self-storage, commercial, and industrial buildings -- rose sharply out of the gate on May 17, advancing by as much as 23% in early trading. Although that big gain didn't hold, the stock was still higher by as much as 16% an hour into the day. The big news was the company's first-quarter 2022 earnings update and revised outlook for the rest of the year.
So what
Janus International's first-quarter sales totaled $229.5 million, a roughly 50% year-over-year increase. That figure was helped along by $22.1 million from acquisitions. Pulling the new businesses out of the mix, sales were still higher by an impressive 35.7% organically. Every sales channel performed well, with the "worst" performer, new construction, witnessing 44.3% sales growth. Clearly, things are going well for the company right now.
Image source: Getty Images.
On the bottom line, adjusted earnings in the first quarter came in at $0.14 per share, down from $0.25 in the same period of 2021. That, however, needs to be taken with a grain of salt, as an increased share count following the company coming public via a merger with a blank check company in mid-2021 was the main reason for the higher share count and, thus, per-share earnings decline. Net income, on an absolute basis, increased 22.8%. What is perhaps even more notable is that the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved 1 percentage point sequentially from the fourth quarter as the company's price hikes and cost-cutting efforts started to kick in. Although the EBITDA margin was lower year over year, the company is clearly seeing some success in addressing inflationary headwinds.
Now what
While the quarter was, on the whole, a solid one, the really exciting news was that management increased its full-year 2022 guidance. Revenue is now expected to come in between $890 million and $910 million, higher than the previous guidance range of $845 million to $865 million. Adjusted EBITDA, meanwhile, is now projected to fall between $193 million and $200 million, soundly higher than the $183 million to $190 million range previously provided. It's little wonder that investors were in a buying mood this morning.