Atotech Q2 Result Tops Consensus, Clocks 44% Revenue Growth, Raises FY21 Guidance

Atotech Ltd ATC reported second-quarter FY21 revenue growth of 44% year-on-year to $376.6 million beating the analyst consensus of $330.9 million.
Total organic revenue increased 32%. FX was a 9% tailwind, and palladium increased total revenue by 3%. Organic growth in chemistry revenue was 24%.
Segments and Margins: Electronics revenue increased 33% Y/Y to $248 million. Adjusted EBITDA margin increased by 70 bps to 34.3%.
General Metal Finishing revenue rose 71% Y/Y to $129 million. Adjusted EBITDA margin increased by nearly 1,300 bps to 25.8%
Chemistry revenue expanded 36.6% Y/Y to $325.3 million, and Equipment revenue improved 125% Y/Y to $51.3 million.
Total adjusted EBITDA increased 63% Y/Y to $118 million, reflecting strong chemistry organic volume growth, stable pricing, and FX tailwinds. The margin expanded 370 bps to 31%, reflecting revenue recovery.
Adjusted EPS of $0.29 beat the analyst consensus of $0.13.
Atotech held $249.4 million in cash and equivalents. It generated $36.8 million in operating cash flow during the six months ended Jun. 30.
MKS Instruments Inc MKSI had agreed to acquire Atotech for $5.1 billion. The transaction is likely to complete in the Q4 of 2021.
Outlook: Atotech raised FY21 organic revenue growth to 13%-14% (prior 11%-13%).
The company raised the adjusted EBITDA outlook to $435 million - $450 million (prior $415 million - $435 million)
Price Action: ATC shares traded higher by 2.69% at $24.40 in premarket on the last check Wednesday.

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Atotech Q2 Result Tops Consensus, Clocks 44% Revenue Growth, Raises FY21 Guidance

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