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Ashland (ASH) Issues Updates for Preliminary Q3 Results

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Ashland Global Holdings Inc. (ASH - Free Report) offered an update for preliminary third-quarter fiscal 2020 financial results.

Notably, the preliminary financial results of the company demonstrated resilience during the quarter, notwithstanding the global macroeconomic uncertainties caused by the coronavirus pandemic.

Per the company, sales were roughly $574 million for the quarter, down 10% year over year as the strength in many consumer markets was more than offset by softer global industrial demand.

The company anticipates income from continuing operations of $50 million or 81 cents per share for the fiscal third quarter. Notably, adjusted earnings from continuing operations are forecast to be $51 million or 84 cents per diluted share. Further, net income (including discontinued operations) for the fiscal third quarter is expected to be $37 million. Adjusted EBITDA is anticipated to be $143 million.

Per Ashland’s management, its fiscal third-quarter financial results showcase the strength of its specialty materials portfolio. Notably, the company’s consumer business segments experienced a substantially stronger demand for pharmaceutical excipients, biofunctional ingredients and additives for hand sanitizers. Further, its industrial business saw signs of improving trends in June after a reduced global demand during April and May.

Also, the company stated that it yielded adjusted EBITDA growth of 2% during the quarter due to combined gains of cost reductions, better product mix and lower raw-material costs.

Notably, Ashland intends to take $20-$30 million of the earlier-disclosed inventory-control actions during the fiscal fourth quarter.

The company plans to report third-quarter earnings on Jul 28. Shares of Ashland have declined 0.5% in the past year against the industry’s 37.4% growth.

 

 

Zacks Rank & Other Stocks to Consider

The company currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Royal Gold, Inc. (RGLD - Free Report) , Sandstorm Gold Ltd (SAND - Free Report) and Harmony Gold Mining Company Limited (HMY - Free Report) .

Royal Gold has a projected earnings growth rate of 62.1% for the current year. The company’s shares have gained 12% in a year. It currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sandstorm Gold has a projected earnings growth rate of 55.6% for the current year. The stock has surged around 53% in a year. It currently has a Zacks Rank of 2.

Harmony Gold has an expected earnings growth rate of 264.3% for 2020. The company’s shares have rallied 163.4% in the past year. It is presently a Zacks #2 Ranked player.

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