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Stepan Co. (SCL) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

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Stepan Co. (SCL - Free Report) reported $579.98 million in revenue for the quarter ended June 2023, representing a year-over-year decline of 22.8%. EPS of $0.53 for the same period compares to $2.30 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $669.85 million, representing a surprise of -13.42%. The company delivered an EPS surprise of -54.70%, with the consensus EPS estimate being $1.17.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Stepan Co. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net sales- Surfactants: $391.69 million versus the three-analyst average estimate of $465.97 million. The reported number represents a year-over-year change of -19.3%.
  • Net sales- Specialty products: $23.77 million compared to the $26.87 million average estimate based on three analysts. The reported number represents a change of -14.1% year over year.
  • Net sales- Polymers: $164.52 million versus $188.13 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -31.1% change.
  • Operating income- Surfactants: $15.14 million versus the three-analyst average estimate of $31.97 million.
  • Operating income- Specialty Products: $3.77 million versus the three-analyst average estimate of $6.37 million.
  • Operating income- Polymers: $16.32 million versus the three-analyst average estimate of $17.57 million.
  • Operating Income- Corporate: -$17.43 million versus -$16.50 million estimated by two analysts on average.
View all Key Company Metrics for Stepan Co. here>>>

Shares of Stepan Co. have returned +4.6% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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