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Quaker Chemical's (KWR) Q2 Earnings and Sales Miss Estimates
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Quaker Chemical Corporation (KWR - Free Report) recorded earnings of $1.94 per share in the second quarter of 2024, up from $1.63 per share in the year-ago quarter.
Barring one-time items, earnings came in at $2.13 per share for the reported quarter, missing the Zacks Consensus Estimate of $2.21.
Net sales fell around 6% year over year to $463.6 million in the quarter. It missed the Zacks Consensus Estimate of $487.9 million. The downside was due to lower selling prices and product mix as well as reduced volumes due to weaker end-market conditions.
Segment Highlights
Sales from the Americas segment fell around 12% year over year to $223.5 million in the reported quarter. It was below the consensus estimate of $242.2 million. Sales were hurt by lower sales volumes as well as decreased selling price and product mix.
The EMEA unit recorded sales of $138 million in the quarter, down 4% year over year. It was below the consensus estimate of $140.3 million. Lower selling prices and an unfavorable currency translation impacted sales.
The Asia/Pacific unit logged sales of $102 million, up around 3% year over year. It was below the consensus estimate of $104 million. Higher sales volumes more than offset a decline in selling price and product mix as well as an unfavorable foreign currency translation.
Financials
The company ended the quarter with cash and cash equivalents of around $188.6 million, down roughly 4% sequentially. Long-term debt was around $703.7 million, down around 5% sequentially.
KWR generated an operating cash flow of $73.5 million during the first six months of 2024.
Outlook
Quaker Chemical noted that it expects to deliver earnings growth in 2024, notwithstanding the challenging end-market environment, which it expects to continue through the end of the year. KWR remains committed to executing its enterprise strategy, enhancing capabilities, and boosting its leading portfolio of products and technical capabilities to drive efficiencies and strengthen the relationship with customers.
Price Performance
Quaker Chemical’s shares are down 10.6% in the past year compared with the industry’s 15.1% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
KWR currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Franco-Nevada Corporation (FNV - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Franco-Nevada is slated to report second-quarter results on Aug 13. The Zacks Consensus Estimate for FNV’s second-quarter earnings is pegged at 78 cents. FNV sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ASM, a Zacks Rank #1 stock, is slated to report second-quarter results on Aug 13. The consensus estimate for ASM’s second-quarter earnings is pegged at 2 cents per share. The stock has rallied nearly 30% in the past year.
Barrick, carrying a Zacks Rank #2 (Buy), is slated to report second-quarter results on Aug 12. The Zacks Consensus Estimate for GOLD’s second-quarter earnings is pegged at 26 cents. The company’s shares have gained roughly 6% in the past year.
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Quaker Chemical's (KWR) Q2 Earnings and Sales Miss Estimates
Quaker Chemical Corporation (KWR - Free Report) recorded earnings of $1.94 per share in the second quarter of 2024, up from $1.63 per share in the year-ago quarter.
Barring one-time items, earnings came in at $2.13 per share for the reported quarter, missing the Zacks Consensus Estimate of $2.21.
Net sales fell around 6% year over year to $463.6 million in the quarter. It missed the Zacks Consensus Estimate of $487.9 million. The downside was due to lower selling prices and product mix as well as reduced volumes due to weaker end-market conditions.
Segment Highlights
Sales from the Americas segment fell around 12% year over year to $223.5 million in the reported quarter. It was below the consensus estimate of $242.2 million. Sales were hurt by lower sales volumes as well as decreased selling price and product mix.
The EMEA unit recorded sales of $138 million in the quarter, down 4% year over year. It was below the consensus estimate of $140.3 million. Lower selling prices and an unfavorable currency translation impacted sales.
The Asia/Pacific unit logged sales of $102 million, up around 3% year over year. It was below the consensus estimate of $104 million. Higher sales volumes more than offset a decline in selling price and product mix as well as an unfavorable foreign currency translation.
Financials
The company ended the quarter with cash and cash equivalents of around $188.6 million, down roughly 4% sequentially. Long-term debt was around $703.7 million, down around 5% sequentially.
KWR generated an operating cash flow of $73.5 million during the first six months of 2024.
Outlook
Quaker Chemical noted that it expects to deliver earnings growth in 2024, notwithstanding the challenging end-market environment, which it expects to continue through the end of the year. KWR remains committed to executing its enterprise strategy, enhancing capabilities, and boosting its leading portfolio of products and technical capabilities to drive efficiencies and strengthen the relationship with customers.
Price Performance
Quaker Chemical’s shares are down 10.6% in the past year compared with the industry’s 15.1% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
KWR currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Franco-Nevada Corporation (FNV - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
Franco-Nevada is slated to report second-quarter results on Aug 13. The Zacks Consensus Estimate for FNV’s second-quarter earnings is pegged at 78 cents. FNV sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ASM, a Zacks Rank #1 stock, is slated to report second-quarter results on Aug 13. The consensus estimate for ASM’s second-quarter earnings is pegged at 2 cents per share. The stock has rallied nearly 30% in the past year.
Barrick, carrying a Zacks Rank #2 (Buy), is slated to report second-quarter results on Aug 12. The Zacks Consensus Estimate for GOLD’s second-quarter earnings is pegged at 26 cents. The company’s shares have gained roughly 6% in the past year.