Haynes International (HAYN) – Favorable Outlook Driven by Growing Demand and Margin Strength


Tuesday, May 09, 2023

Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, nickel and cobalt-based high-performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Second quarter financial results. Second quarter net income increased 45.6% to $12.3 million, or $0.96 per share (EPS), compared to the prior year period and rose 59.6% compared to the first quarter of fiscal year 2023. Revenues of $152.8 million increased 30.5% on a year-over-year basis and grew 15.2% compared to the prior quarter. The estimated impact from raw material volatility during the quarter resulted in a $1.7 million headwind that compressed gross margin by 1.1% to 20.2%. Adjusted EBITDA increased 38.4% to $22.4 million compared to $16.2 million during the prior year period and rose 37.0% compared to $16.4 million during the prior quarter.

Updating estimates. Management expects earnings in the third quarter to be higher than the second quarter and continues to expect fiscal 2023 earnings to be 15% to 20% higher than during fiscal year 2022. To err on the side of conservatism, we have trimmed our fiscal 2023 EBITDA, net income and EPS estimates to $93.3 million, $51.4 million, and $4.04, respectively, from $94.3 million, $53.1 million, and $4.18. Our revised net income estimate represents 15.1% growth year-over-year compared to 18.9% previously. Our 2024 EBITDA, net income, and EPS estimates are $106.8 million, $60.8 million, and $4.80, respectively.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

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