Barnes Group Inc. (B)

Shares of Barnes Group, Inc (B) dropped by 32.82% from $29.98 to $20.14 in the trading on Friday, October 27, 2023. The reason why B stock down is due to the company's downbeat thirs-quarter earnings and lowered FY2023 outlook.

• In the third quarter, the company reported a net sales increase of 15% to $361 million, with organic sales up 4%. However, operating income dropped significantly to $10.0 million, and an adjusted operating margin of 10.8% was down 160 bps. The company attributed these declines to restructuring costs and acquisition-related expenses.
• In terms of segments, aerospace sales surged 41%, while industrial sales remained nearly flat. Aerospace operating profit decreased, while the industrial segment saw a 14% drop in adjusted operating profit.
• Looking ahead, Barnes Group expects organic sales growth of 5% to 6% for 2023 and an adjusted operating margin between 11% and 12%. Adjusted earnings per share are forecasted to be in the range of $1.57 to $1.67, but this outlook is lower due to impacts from the MB Aerospace acquisition and a softer industrial sector. The company anticipates expenses related to restructuring, acquisition costs, and purchase accounting adjustments in its adjusted earnings.