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Quaker Chemical's (KWR) Q1 Earnings Beat Estimates, Sales Lag
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Quaker Chemical Corporation (KWR - Free Report) recorded earnings of $1.95 per share in the first quarter of 2024, up from $1.64 per share in the year-ago quarter.
Barring one-time items, earnings came in at $2.09 per share for the reported quarter, topping the Zacks Consensus Estimate of $1.97.
Net sales fell around 6% year over year to $469.8 million in the quarter. Sales missed the Zacks Consensus Estimate of $491.3 million. The downside was due to lower selling prices and product mix as well as reduced volumes due to weaker end-market conditions.
Segment Highlights
Sales from the Americas segment fell around 9% year over year to $229.8 million in the reported quarter. It was below the consensus estimate of $237.2 million. Lower sales volumes as well as decreased selling price and product mix more than offset favorable foreign currency swings.
The EMEA unit recorded sales of $138.4 million in the quarter, down 9% year over year. It was below the consensus estimate of $151.7 million. A favorable currency translation was more than offset by a decline in selling price and product mix as well as lower sales volumes.
The Asia/Pacific unit logged sales of $101.6 million, up around 6% year over year. It was below the consensus estimate of $103.2 million. Higher sales volumes more than offset a decline in selling price and product mix as well as an unfavorable foreign currency translation.
Financials
The company ended the quarter with cash and cash equivalents of around $195.8 million, up roughly 0.7% sequentially. Long-term debt was around $740.4 million, up around 1% sequentially.
KWR generated operating cash flow of $27.2 million in the reported quarter.
Outlook
Quaker Chemical noted that it is well placed to deliver volume and earnings growth in 2024. KWR remains committed to executing its enterprise strategy. The company also expects its investments to enhance its ability to outperform its end markets.
Price Performance
Quaker Chemical’s shares are down 10.5% in the past year compared with the industry’s 10.3% decline.
Integra Resources is expected to report first-quarter results on May 10. The Zacks Consensus Estimate for ITRG’s first-quarter earnings is pegged at a loss of 3 cents. The consensus estimate for ITRG’s first-quarter earnings has been stable in the past 60 days.
Innospec is slated to report first-quarter results on May 9. The consensus estimate for IOSP’s first-quarter earnings is pegged at $1.64 per share. The company’s shares have rallied around 29% in the past year.
American Vanguard is slated to report first-quarter results on May 9. The consensus estimate for AVD’ first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.
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Quaker Chemical's (KWR) Q1 Earnings Beat Estimates, Sales Lag
Quaker Chemical Corporation (KWR - Free Report) recorded earnings of $1.95 per share in the first quarter of 2024, up from $1.64 per share in the year-ago quarter.
Barring one-time items, earnings came in at $2.09 per share for the reported quarter, topping the Zacks Consensus Estimate of $1.97.
Net sales fell around 6% year over year to $469.8 million in the quarter. Sales missed the Zacks Consensus Estimate of $491.3 million. The downside was due to lower selling prices and product mix as well as reduced volumes due to weaker end-market conditions.
Segment Highlights
Sales from the Americas segment fell around 9% year over year to $229.8 million in the reported quarter. It was below the consensus estimate of $237.2 million. Lower sales volumes as well as decreased selling price and product mix more than offset favorable foreign currency swings.
The EMEA unit recorded sales of $138.4 million in the quarter, down 9% year over year. It was below the consensus estimate of $151.7 million. A favorable currency translation was more than offset by a decline in selling price and product mix as well as lower sales volumes.
The Asia/Pacific unit logged sales of $101.6 million, up around 6% year over year. It was below the consensus estimate of $103.2 million. Higher sales volumes more than offset a decline in selling price and product mix as well as an unfavorable foreign currency translation.
Financials
The company ended the quarter with cash and cash equivalents of around $195.8 million, up roughly 0.7% sequentially. Long-term debt was around $740.4 million, up around 1% sequentially.
KWR generated operating cash flow of $27.2 million in the reported quarter.
Outlook
Quaker Chemical noted that it is well placed to deliver volume and earnings growth in 2024. KWR remains committed to executing its enterprise strategy. The company also expects its investments to enhance its ability to outperform its end markets.
Price Performance
Quaker Chemical’s shares are down 10.5% in the past year compared with the industry’s 10.3% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
KWR currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include Integra Resources Corp. (ITRG - Free Report) , Innospec Inc. (IOSP - Free Report) and American Vanguard Corporation (AVD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Integra Resources is expected to report first-quarter results on May 10. The Zacks Consensus Estimate for ITRG’s first-quarter earnings is pegged at a loss of 3 cents. The consensus estimate for ITRG’s first-quarter earnings has been stable in the past 60 days.
Innospec is slated to report first-quarter results on May 9. The consensus estimate for IOSP’s first-quarter earnings is pegged at $1.64 per share. The company’s shares have rallied around 29% in the past year.
American Vanguard is slated to report first-quarter results on May 9. The consensus estimate for AVD’ first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.