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Ingevity's (NGVT) Earnings and Sales Top Estimates in Q2

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Ingevity Corporation (NGVT - Free Report) recorded profits of $59.8 million or $1.54 per share in second-quarter 2022, up from a profit of $44.3 million or $1.10 in the year-ago quarter.

Excluding one-time items, adjusted earnings in the quarter were $1.73 per share, up from $155 a year ago. The figure topped the Zacks Consensus Estimate of $1.68.

The company’s revenues rose around 17% year over year to a record $419.9 million in the quarter, beating the Zacks Consensus Estimate of $406.5 million. It benefited from actions to increase prices, which helped it offset inflationary cost pressures.

 

Ingevity Corporation Price, Consensus and EPS Surprise

 

Ingevity Corporation Price, Consensus and EPS Surprise

Ingevity Corporation price-consensus-eps-surprise-chart | Ingevity Corporation Quote

 

Segment Review

The Performance Chemicals division generated revenues of $297.5 million in the reported quarter, rising around 28% year over year. Sales rose around 21% in Engineered Polymers while sales in Industrial Specialties went up roughly 38%.

Revenues in the Performance Materials unit fell around 3% year over year to $122.4 million. Sales of activated carbon products were hurt by reduced automotive production due to the pandemic-related shutdowns in China and its impacts across the rest of the Asia-Pacific region.

Financials

Ingevity ended the quarter with cash and cash equivalents of $131.3 million, down around 44% year over year. Long-term debt was $1,176.2 million, down roughly 7% year over year.

Operating cash flow was $90.5 million for the reported quarter, up around 38% year over year.

Outlook

The company reaffirmed its sales guidance for 2022 in the band of $1.525-$1.65 billion and adjusted EBITDA outlook in the range of $430-$470 million.

Price Performance

Shares of Ingevity have declined 14.6% in a year against a 18.4% decline of the industry.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Key Picks

Ingevity currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Albemarle Corporation (ALB - Free Report) .

Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 34% over a year.

Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 57.8% upward in the past 60 days.

Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained roughly 82% in a year. The company sports a Zacks Rank #1.

Albemarle has a projected earnings growth rate of 231.4% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 3.6% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 3% in a year and currently carries a Zacks Rank #2.

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