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Ingevity (NGVT) Q2 Earnings Meet, Revenues Miss Estimates
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Ingevity Corporation (NGVT - Free Report) recorded profits of $35.5 million or 97 cents per share in second-quarter 2023, down from a profit of $59.8 million or $1.54 per share in the year-ago quarter.
Excluding one-time items, adjusted earnings in the quarter were $1.41 per share, down from $1.73 a year ago. The figure was in line with the Zacks Consensus Estimate.
The company’s revenues rose 14.7% year over year to $481.8 million in the quarter, missing the Zacks Consensus Estimate of $483.5 million. The top line was driven by higher prices across segments, and increased volumes in the Performance Materials segment and the pavement technologies business line in the Performance Chemicals unit. These were modestly offset by lower volumes in the Performance Chemicals’ industrial specialties business line and the Advanced Polymer Technologies unit.
Ingevity Corporation Price, Consensus and EPS Surprise
The Performance Chemicals division generated revenues of $284 million in the reported quarter, rising around 17% year over year. The reported figure was higher than our estimate of $251 million.
Revenues in the Performance Materials unit rose around 18% year over year to $144.6 million. The figure was lower than our estimate of $160.3 million.
Sales in the Advanced Polymer Technologies segment were flat at $53.2 million. Our estimate for the same was $70.4 million.
Financials
Ingevity ended the quarter with cash and cash equivalents of $68 million, down around 48% year over year. The long-term debt was $1,525.5 million, up roughly 30% year over year.
The operating cash flow was $48.4 million for the reported quarter, down around 47% year over year.
Outlook
The company adjusted its sales guidance for 2023 to $1.6-$1.7 billion and adjusted EBITDA outlook to $390-$420 million.
Price Performance
Shares of Ingevity have increased 40.6% in a year against a 12.5% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Ingevity currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are PPG Industries Inc. (PPG - Free Report) , ATI Inc. (ATI - Free Report) and Carpenter Technology Corporation (CRS - Free Report) .
PPG, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 20.8% for the current fiscal year. The Zacks Consensus Estimate for PPG's earnings for the current fiscal year has been revised 1.6% upward in the past 60 days. It delivered an earnings surprise of 7.3% each of the trailing four quarters, on average. PPG has gained 11.7% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
ATI, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 13.1% for the current year. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13%, on average. ATI shares have gained 54.1% in a year.
CRS, currently flaunting a Zacks Rank #1, has a projected earnings growth rate of 198.11% for the current year. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of 30.9%, on average. CRS shares have grown 79.1% in a year.
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Ingevity (NGVT) Q2 Earnings Meet, Revenues Miss Estimates
Ingevity Corporation (NGVT - Free Report) recorded profits of $35.5 million or 97 cents per share in second-quarter 2023, down from a profit of $59.8 million or $1.54 per share in the year-ago quarter.
Excluding one-time items, adjusted earnings in the quarter were $1.41 per share, down from $1.73 a year ago. The figure was in line with the Zacks Consensus Estimate.
The company’s revenues rose 14.7% year over year to $481.8 million in the quarter, missing the Zacks Consensus Estimate of $483.5 million. The top line was driven by higher prices across segments, and increased volumes in the Performance Materials segment and the pavement technologies business line in the Performance Chemicals unit. These were modestly offset by lower volumes in the Performance Chemicals’ industrial specialties business line and the Advanced Polymer Technologies unit.
Ingevity Corporation Price, Consensus and EPS Surprise
Ingevity Corporation price-consensus-eps-surprise-chart | Ingevity Corporation Quote
Segmental Review
The Performance Chemicals division generated revenues of $284 million in the reported quarter, rising around 17% year over year. The reported figure was higher than our estimate of $251 million.
Revenues in the Performance Materials unit rose around 18% year over year to $144.6 million. The figure was lower than our estimate of $160.3 million.
Sales in the Advanced Polymer Technologies segment were flat at $53.2 million. Our estimate for the same was $70.4 million.
Financials
Ingevity ended the quarter with cash and cash equivalents of $68 million, down around 48% year over year. The long-term debt was $1,525.5 million, up roughly 30% year over year.
The operating cash flow was $48.4 million for the reported quarter, down around 47% year over year.
Outlook
The company adjusted its sales guidance for 2023 to $1.6-$1.7 billion and adjusted EBITDA outlook to $390-$420 million.
Price Performance
Shares of Ingevity have increased 40.6% in a year against a 12.5% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Ingevity currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are PPG Industries Inc. (PPG - Free Report) , ATI Inc. (ATI - Free Report) and Carpenter Technology Corporation (CRS - Free Report) .
PPG, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 20.8% for the current fiscal year. The Zacks Consensus Estimate for PPG's earnings for the current fiscal year has been revised 1.6% upward in the past 60 days. It delivered an earnings surprise of 7.3% each of the trailing four quarters, on average. PPG has gained 11.7% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
ATI, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 13.1% for the current year. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13%, on average. ATI shares have gained 54.1% in a year.
CRS, currently flaunting a Zacks Rank #1, has a projected earnings growth rate of 198.11% for the current year. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of 30.9%, on average. CRS shares have grown 79.1% in a year.