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Ingevity's (NGVT) Earnings and Revenues Miss Estimates in Q2

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Ingevity Corporation (NGVT - Free Report) recorded a second-quarter 2024 loss of $283.7 million or a loss of $7.81 per share. In the year-ago quarter, it posted a profit of $35.5 million or 97 cents per share.

Excluding one-time items, adjusted earnings in the quarter were $1.01 per share, down from $1.41 a year ago. The figure missed the Zacks Consensus Estimate of $1.05.

The company’s revenues declined 18.9% year over year to $390.6 million in the quarter, missing the Zacks Consensus Estimate of $415.5 million. The fall in the top line was the result of the Performance Chemicals segment's repositioning, which included limiting exposure to specific markets within the Industrial Specialties product line. Higher sales in Performance Materials due to increased pricing and strong automotive carbon volumes offset the decline.

Ingevity Corporation Price, Consensus and EPS Surprise

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 $185.5 million in the reported quarter, declining around 34.7% year over year. The reported figure missed the Zacks Consensus Estimate of $215.9 million.

Revenues in the Performance Materials unit rose around 8.7% year over year to $157.2 million. The figure topped the Zacks Consensus Estimate of $150.4 million.

Sales in the Advanced Polymer Technologies segment were down 9.9% to $47.9 million. The Zacks Consensus Estimate for the same was $49.2 million.

Financials

Ingevity ended the quarter with cash and cash equivalents of $107.4 million, up around 57.9% year over year. The long-term debt was $1,401 million, down 8.1% year over year.

The operating cash flow was $29.7 million for the reported quarter, down around 38.6% year over year.

Outlook

The company revised its sales guidance for 2024 to $1.4-$1.5 billion and adjusted EBITDA outlook to $350-$360 million.

Price Performance

Shares of Ingevity have plunged 23.2% in a year compared with a 13% decline of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

NGVT currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks worth a look in the basic materials space include Barrick Gold Corporation (GOLD - Free Report) , Hecla Mining Company (HL - Free Report) and SilverCrest Metals Inc. (SILV - Free Report) .

Barrick is slated to report second-quarter results on Aug 12, before market open. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 26 cents. GOLD beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 18.3%. GOLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hecla, carrying a Zacks Rank #1, is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for its second-quarter earnings is pegged at a penny per share. HL beat the consensus estimate in two of the last four quarters, with the average earnings surprise being 33.3%

SilverCrest will report results for the second quarter on Aug 7. The Zacks Consensus Estimate for its second-year earnings is pegged at 17 cents. SILV, a Zacks Rank #2 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 42.4%. The stock has surged nearly 92.5% in the past year. 

 

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