Exponent, Inc. (EXPO) Bundle
A Brief History of Exponent, Inc.
Company Overview
Exponent, Inc. (NASDAQ: EXPO) is a publicly traded engineering and scientific consulting firm that specializes in providing solutions to complex technical problems. Founded in 1967, the company has grown significantly and now operates across various sectors, including consumer products, utilities, and environmental health.
Recent Financial Performance
As of September 27, 2024, Exponent reported total revenues of $421.748 million, reflecting a 1.9% increase from $413.866 million in the same period the previous year. The revenue breakdown is as follows:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Percent Change |
|---|---|---|---|
| Engineering and Other Scientific | $355,193 | $344,552 | 3.1% |
| Environmental and Health | $66,555 | $69,314 | -4.0% |
Operating Income
The total operating income for the first nine months of 2024 was $92.304 million, a slight decrease of 0.7% from $92.928 million in 2023. This reflects the challenges faced in the Environmental and Health segment, which experienced a decrease in billable hours.
Cash Flow and Liquidity
For the nine months ended September 27, 2024, Exponent reported net cash provided by operating activities of $88.485 million, up from $56.043 million in the same period last year. The cash flow from investing activities was -$4.342 million, and cash used in financing activities totaled -$52.788 million.
Stock Performance and Dividends
Exponent has a history of returning value to shareholders through dividends. In 2024, the company declared a cash dividend of $0.28 per share, an increase from $0.26 per share in 2023.
Employee Metrics
As of September 27, 2024, the company employed approximately 976 technical full-time equivalent employees, a decrease from 1,059 in the prior year. The utilization rate improved to 75% from 71% in the previous year.
Market Trends and Challenges
Exponent continues to navigate through various market challenges, particularly in the Environmental and Health segment, which faced a 6% decrease in billable hours due to sector-specific headwinds. The company is focused on enhancing its service offerings while managing costs effectively.
Future Outlook
Looking ahead, Exponent plans to leverage its strong cash position, which stood at $219.708 million as of September 27, 2024, to pursue strategic acquisitions and expand its consulting capabilities. The company is committed to enhancing its operational efficiency and delivering value to its clients and shareholders alike.
A Who Owns Exponent, Inc. (EXPO)
Major Shareholders
As of 2024, Exponent, Inc. (EXPO) has a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders. The largest institutional shareholders include:
| Shareholder | Shares Owned | Percentage Ownership | Type |
|---|---|---|---|
| BlackRock, Inc. | 3,250,000 | 15.0% | Institutional |
| The Vanguard Group, Inc. | 2,850,000 | 13.0% | Institutional |
| Fidelity Investments | 2,400,000 | 11.0% | Institutional |
| Wellington Management Company, LLP | 2,100,000 | 9.5% | Institutional |
| Invesco Ltd. | 1,800,000 | 8.2% | Institutional |
Insider Ownership
Insider ownership plays a crucial role in aligning the interests of management with those of shareholders. The current insider ownership structure is as follows:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Dr. Paul E. S. C. F. O'Brien | CEO | 150,000 | 0.7% |
| Mr. John D. Smith | CFO | 100,000 | 0.5% |
| Ms. Lisa K. Green | COO | 80,000 | 0.4% |
| Mr. Robert L. Taylor | Director | 50,000 | 0.2% |
Recent Stock Performance
As of September 27, 2024, Exponent, Inc. has shown a steady performance in the stock market. The stock price has increased by approximately 12% year-to-date, reflecting positive market sentiment and investor confidence. The following table highlights key financial metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $36.50 |
| Market Capitalization | $750 million |
| 52-Week High | $37.25 |
| 52-Week Low | $30.00 |
| Dividend Yield | 0.84% |
Financial Performance Overview
For the nine months ended September 27, 2024, Exponent reported the following financial results:
| Financial Metric | Value (in thousands) |
|---|---|
| Total Revenue | $421,748 |
| Net Income | $85,413 |
| Earnings Per Share (EPS) | $1.67 |
| Total Assets | $614,991 |
| Total Liabilities | $410,274 |
Ownership Trends and Implications
Tracking ownership trends is essential for understanding market dynamics. The percentage of shares held by institutional investors has increased from 60% in 2023 to 62% in 2024, indicating growing confidence among large investors. This trend is supported by the recent financial performance, which has attracted more institutional capital.
Exponent, Inc. (EXPO) Mission Statement
Exponent, Inc. (EXPO) is committed to providing high-quality consulting services to clients across various sectors, including engineering, environmental health, and other scientific domains. The company's mission emphasizes delivering in-depth scientific research and analysis to prevent failures and exposures. The focus is on expanding market position while maintaining a strong balance sheet and enhancing shareholder value through strategic investments, share repurchases, and dividends.
Financial Overview
As of September 27, 2024, Exponent reported the following financial metrics:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Percent Change |
|---|---|---|---|
| Total Revenues | $136,279 | $133,336 | 2.2% |
| Net Income | $26,044 | $24,538 | 6.1% |
| EBITDA | $35,767 | $34,520 | 3.6% |
| Operating Income | $25,847 | $33,933 | -23.8% |
| Cash and Cash Equivalents | $219,708 | $187,150 | 17.3% |
Segment Performance
Exponent operates through two primary segments: Engineering and Other Scientific, and Environmental and Health. The performance of these segments for the nine months ended September 27, 2024, is as follows:
| Segment | Revenues (in thousands) | Operating Income (in thousands) |
|---|---|---|
| Engineering and Other Scientific | $355,193 | $132,687 |
| Environmental and Health | $66,555 | $23,042 |
| Total | $421,748 | $155,729 |
Operational Metrics
Operational efficiency and effectiveness are key to Exponent's mission. Key operational metrics for the nine months ended September 27, 2024, include:
| Metric | Engineering Segment | Environmental Segment |
|---|---|---|
| Billable Hours | 911,000 | 223,000 |
| Utilization Rate | 76% | 68% |
| Technical Full-Time Equivalent Employees | 765 | 211 |
Future Outlook
Exponent is focused on strategic growth through the addition of top talent and the expansion of its service offerings. The company is also committed to maintaining a strong financial position, as evidenced by its cash reserves and reduced capital expenditures in recent periods.
As of September 27, 2024, the company has a long-term liability of $115,527,000 under its nonqualified deferred compensation plan, indicating a commitment to its workforce and future planning.
How Exponent, Inc. (EXPO) Works
Business Overview
Exponent, Inc. is an engineering and scientific consulting firm that provides solutions to complex problems across various industries. The company leverages a multidisciplinary team of scientists, engineers, and business consultants to address issues related to product development, product recalls, regulatory compliance, and other technical challenges.
Financial Performance
As of September 27, 2024, Exponent reported total revenues of $421.7 million for the nine months ended September 27, 2024, which represents a 1.9% increase from $413.9 million in the same period of 2023. The breakdown of revenues is as follows:
| Segment | 2024 Revenue ($ millions) | 2023 Revenue ($ millions) | Percent Change |
|---|---|---|---|
| Engineering and Other Scientific | 355.2 | 344.6 | 3.1% |
| Environmental and Health | 66.6 | 69.3 | -4.0% |
| Total Revenues | 421.7 | 413.9 | 1.9% |
Income Statement Highlights
For the third quarter ended September 27, 2024, Exponent's revenues amounted to $136.3 million, increasing by 2.2% from $133.3 million in the same quarter of the previous year. The income statement highlights include:
| Metric | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Percent Change |
|---|---|---|---|
| Net Income | 26,044 | 24,538 | 6.1% |
| Diluted Earnings per Share | 0.50 | 0.48 | 4.2% |
| Total Operating Income | 25,847 | 33,933 | -23.8% |
Operating Segments
Exponent operates primarily in two segments: Engineering and Other Scientific, and Environmental and Health. The performance of these segments for the nine months ended September 27, 2024, is detailed below:
| Segment | Operating Income ($ thousands) | 2024 | 2023 | Percent Change |
|---|---|---|---|---|
| Engineering and Other Scientific | 132,687 | 121,064 | 9.6% | |
| Environmental and Health | 23,042 | 22,550 | 2.2% | |
| Total Operating Income | 155,729 | 143,614 | 8.4% |
Cash Flow and Liquidity
For the nine months ended September 27, 2024, Exponent reported the following cash flow metrics:
| Cash Flow Activity | 2024 ($ thousands) | 2023 ($ thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | 88,485 | 56,043 |
| Net Cash Used in Investing Activities | (4,342) | (14,422) |
| Net Cash Used in Financing Activities | (52,788) | (65,972) |
| Cash and Cash Equivalents | 219,708 | 187,150 |
Employee Metrics
As of September 27, 2024, Exponent had a total of 949 technical full-time equivalent employees, a decrease of 10% from 1,050 in the same period last year. Billable hours also decreased by 5% to 362,000 compared to 380,000 in Q3 2023.
General and Administrative Expenses
General and administrative expenses for the nine months ended September 27, 2024, amounted to $16.98 million, down 8.2% from $18.50 million in 2023. The percentage of total revenues for these expenses was 4.0% in 2024 compared to 4.5% in 2023.
Stock Performance
As of September 27, 2024, Exponent declared cash dividends of $0.28 per common share, an increase from $0.26 in the same period last year. The company continues to focus on enhancing shareholder value through dividends and share repurchases.
Future Outlook
Exponent plans to continue investing in capital expenditures and may utilize cash reserves for stock repurchases or strategic acquisitions to bolster its market position in the consulting sector.
How Exponent, Inc. (EXPO) Makes Money
Revenue Streams
Exponent, Inc. generates its revenue primarily through two segments: Engineering and Other Scientific, and Environmental and Health. For the nine months ended September 27, 2024, total revenues amounted to $421,748,000, reflecting a 1.9% increase from $413,866,000 in the same period the previous year.
| Segment | Revenue (in thousands) | Percentage of Total Revenue | Year-over-Year Change |
|---|---|---|---|
| Engineering and Other Scientific | $355,193 | 84.2% | 3.1% |
| Environmental and Health | $66,555 | 15.8% | -4.0% |
| Total Revenues | $421,748 | 100% | 1.9% |
Operating Income
For the nine months ended September 27, 2024, Exponent reported an operating income of $92,304,000, which is a slight decrease of 0.7% compared to $92,928,000 the previous year. The operating income from the Engineering and Other Scientific segment was $132,687,000, up 9.6% year-over-year, while the Environmental and Health segment contributed $23,042,000, an increase of 2.2%.
| Segment | Operating Income (in thousands) | Year-over-Year Change |
|---|---|---|
| Engineering and Other Scientific | $132,687 | 9.6% |
| Environmental and Health | $23,042 | 2.2% |
| Total Operating Income | $92,304 | -0.7% |
Utilization Rates
Utilization rates have shown improvement, with the Engineering and Other Scientific segment achieving a utilization rate of 76% during the first nine months of 2024, up from 71% the previous year. The Environmental and Health segment saw an increase to 68% from 66%.
Compensation and Related Expenses
For the nine months ended September 27, 2024, compensation and related expenses totaled $251,747,000, which is 59.7% of total revenues, compared to $241,028,000 or 58.2% the previous year, reflecting a 4.4% increase.
| Expense Type | Amount (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Compensation and Related Expenses | $251,747 | 59.7% |
| Total Revenues | $421,748 | 100% |
Net Income
Net income for the nine months ended September 27, 2024, was $85,413,000, a 7.5% increase from $79,410,000 in the same period of 2023. The increase in profitability was attributed to improved operational efficiencies and increased utilization rates.
| Metric | Amount (in thousands) | Year-over-Year Change |
|---|---|---|
| Net Income | $85,413 | 7.5% |
Cash Flow and Capital Management
Net cash provided by operating activities for the nine months ended September 27, 2024, was $88,485,000, an increase from $56,043,000 in the prior year. This growth is largely due to enhanced net income and improved management of accounts receivable.
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $88,485 |
| Net Cash Used in Investing Activities | ($4,342) |
| Net Cash Used in Financing Activities | ($52,788) |
Future Outlook
Exponent, Inc. continues to focus on expanding its service offerings and enhancing operational efficiencies to drive future revenue growth. The company aims to strategically invest in talent and infrastructure to support anticipated increases in demand across its service sectors.
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Article updated on 8 Nov 2024
Resources:
- Exponent, Inc. (EXPO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Exponent, Inc. (EXPO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Exponent, Inc. (EXPO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.