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Ashland (ASH) Up 4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Ashland (ASH - Free Report) . Shares have added about 4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ashland due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Ashland's Earnings & Revenues Surpass Estimates in Q2
Ashland recorded second-quarter fiscal 2024 (ending Mar 31, 2024) profits of $120 million or $2.39 per share, up from $91 million or $1.67 in the prior-year quarter.
Barring one-time items, adjusted earnings came in at $1.27 per share, down from the year-ago quarter’s figure of $1.43. The bottom line surpassed the Zacks Consensus Estimate of $1.19.
Sales were down 4.6% year over year to $575 million. The top line beat the Zacks Consensus Estimate of $574.2 million. Sales for the fiscal second quarter were adversely impacted by softer pricing.
Segment Highlights
Life Sciences: Sales in the segment were down 7.5% year over year to $222 million in the reported quarter. The Zacks Consensus Estimate for the same was $238.1 million. Volumes to the nutrition end market showed modest sequential growth but were lower than the previous year. Sales of nutraceutical products are still recovering well compared with last year. Foreign currency had a minor impact on sales compared with the prior-year quarter.
Personal Care: Sales in the division jumped 1.2% year over year to $169 million. The Zacks Consensus Estimate for the same was $159.3 million. Increased volume in skin care, oral care and hair care was slightly offset by reduced volume in Avoca and lower pricing. Foreign currency had a negative influence on sales.
Specialty Addiitives: Sales in the segment fell 2.5% year over year to $157 million. It topped the Zacks Consensus Estimate of $149.5 million. Sales fell as higher volumes in coatings and performance specialties were more than offset by lower pricing, primarily in Asia Pacific and lower energy end market volumes. Foreign currency had a negligible impact on sales.
Intermediates: Sales in the segment went down 21.5% year over year to $40 million. The figure modestly beat the consensus estimate of $39 million. Lower prices were the leading cause of the decline, somewhat offsetting increased merchant volumes. Sales of captive-based butanediol are recognized at market-based pricing, which represents a decrease from the same quarter last year. Sales were modestly impacted by foreign exchange compared with a year ago.
Financials
Cash and cash equivalents were $439 million at the end of the quarter, up around 10% from a year ago. Long-term debt was $1,328 million, flat year over year.
Cash flows provided by operating activities were $54 million in the reported quarter, decreasing modestly from $56 million in the prior-year quarter.
Outlook
Ashland expects sales for the fiscal third quarter to be in the range of $560-$580 million. It also expects adjusted EBITDA to be in the band of $138-$148 million. For the full fiscal year, Ashland expects sales to be in the range of $2,150-$2,225 million and adjusted EBITDA to be $470-$500 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, Ashland has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Ashland has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Ashland (ASH) Up 4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Ashland (ASH - Free Report) . Shares have added about 4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ashland due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Ashland's Earnings & Revenues Surpass Estimates in Q2
Ashland recorded second-quarter fiscal 2024 (ending Mar 31, 2024) profits of $120 million or $2.39 per share, up from $91 million or $1.67 in the prior-year quarter.
Barring one-time items, adjusted earnings came in at $1.27 per share, down from the year-ago quarter’s figure of $1.43. The bottom line surpassed the Zacks Consensus Estimate of $1.19.
Sales were down 4.6% year over year to $575 million. The top line beat the Zacks Consensus Estimate of $574.2 million. Sales for the fiscal second quarter were adversely impacted by softer pricing.
Segment Highlights
Life Sciences: Sales in the segment were down 7.5% year over year to $222 million in the reported quarter. The Zacks Consensus Estimate for the same was $238.1 million. Volumes to the nutrition end market showed modest sequential growth but were lower than the previous year. Sales of nutraceutical products are still recovering well compared with last year. Foreign currency had a minor impact on sales compared with the prior-year quarter.
Personal Care: Sales in the division jumped 1.2% year over year to $169 million. The Zacks Consensus Estimate for the same was $159.3 million. Increased volume in skin care, oral care and hair care was slightly offset by reduced volume in Avoca and lower pricing. Foreign currency had a negative influence on sales.
Specialty Addiitives: Sales in the segment fell 2.5% year over year to $157 million. It topped the Zacks Consensus Estimate of $149.5 million. Sales fell as higher volumes in coatings and performance specialties were more than offset by lower pricing, primarily in Asia Pacific and lower energy end market volumes. Foreign currency had a negligible impact on sales.
Intermediates: Sales in the segment went down 21.5% year over year to $40 million. The figure modestly beat the consensus estimate of $39 million. Lower prices were the leading cause of the decline, somewhat offsetting increased merchant volumes. Sales of captive-based butanediol are recognized at market-based pricing, which represents a decrease from the same quarter last year. Sales were modestly impacted by foreign exchange compared with a year ago.
Financials
Cash and cash equivalents were $439 million at the end of the quarter, up around 10% from a year ago. Long-term debt was $1,328 million, flat year over year.
Cash flows provided by operating activities were $54 million in the reported quarter, decreasing modestly from $56 million in the prior-year quarter.
Outlook
Ashland expects sales for the fiscal third quarter to be in the range of $560-$580 million. It also expects adjusted EBITDA to be in the band of $138-$148 million. For the full fiscal year, Ashland expects sales to be in the range of $2,150-$2,225 million and adjusted EBITDA to be $470-$500 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
At this time, Ashland has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Ashland has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.