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Ashland's Earnings Miss in Q4, Revenues Surpass Estimates
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Ashland Inc. (ASH - Free Report) recorded fourth-quarter fiscal 2024 (ended Sept. 30, 2024) adjusted earnings of $1.26 per share, up from 41 cents in the prior-year quarter. The bottom line lagged the Zacks Consensus Estimate of $1.33.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Sales for the reported quarter were up around 1% year over year to $522 million. It beat the Zacks Consensus Estimate of $518.7 million. ASH saw higher sales volumes in Personal Care, Specialty Additives and Intermediates segments, partly masked by lower volumes in Life Sciences due to portfolio optimization initiatives. Pricing was weaker year over year in a modestly deflationary raw material environment.
Life Sciences: Sales in the segment fell 5% from the prior-year quarter to $192 million in the reported quarter. The downside reflects the CMC and nutraceuticals portfolio optimization actions, partly offset by gains in pharma and crop-care sales. The figure was above the Zacks Consensus Estimate of $182.5 million.
Personal Care: Sales in the division were up 11% year over year to $162 million. The upside was driven by higher sales volume in skin care and hair care on an uptick in demand in most regions. The figure missed the Zacks Consensus Estimate of $173.7 million.
Specialty Additives: Sales in the segment were flat year over year at $144 million. Higher volumes in coatings and performance specialties were offset by MC and CMC portfolio optimization and reduced pricing. The figure beat the Zacks Consensus Estimate of $139.7 million.
Intermediates: Sales in the segment went down 3% year over year to $36 million. Merchant sales fell due to lower n-methyl-2-pyrrolidone pricing, partly offset by higher merchant butanediol volumes. The figure beat the Zacks Consensus Estimate of $34 million.
Ashland’s Financials
Operating activities generated $80 million in cash flows in the reported quarter compared with $130 million in the same period last year. Ongoing free cash flow was $88 million, down from $104 million.
ASH’s Outlook
For fiscal 2025, the company expects sales in the range of $1.90-$2.05 billion and adjusted EBITDA to be in the band of $430-$470 million. ASH expects to grow volumes in fiscal 2025 to offset increased pricing competition.
The company noted that it is initiating a restructuring plan to reduce its cost structure, boost manufacturing productivity and cut its product cost, especially in HEC and VP&D businesses.
ASH Stock’s Price Performance
Shares of Ashland have gained 7.7% in the past year compared with the Zacks Chemicals Specialty industry’s 2.8% decline.
DuPont de Nemours, Inc. (DD - Free Report) logged adjusted earnings of $1.18 per share in the third quarter, topping the Zacks Consensus Estimate of $1.04. DD raised its full-year 2024 projections for operating EBITDA and adjusted earnings per share.
The Chemours Company (CC - Free Report) recorded adjusted earnings of 40 cents for the third quarter, topping the Zacks Consensus Estimate of 32 cents. CC expects consolidated net sales to decline in the mid to high-single digits sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range compared with third-quarter 2024 results.
PPG Industries, Inc. (PPG - Free Report) logged third-quarter adjusted earnings per share of $2.13, missing the Zacks Consensus Estimate of $2.15. PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for full-year 2024.
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Ashland's Earnings Miss in Q4, Revenues Surpass Estimates
Ashland Inc. (ASH - Free Report) recorded fourth-quarter fiscal 2024 (ended Sept. 30, 2024) adjusted earnings of $1.26 per share, up from 41 cents in the prior-year quarter. The bottom line lagged the Zacks Consensus Estimate of $1.33.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Sales for the reported quarter were up around 1% year over year to $522 million. It beat the Zacks Consensus Estimate of $518.7 million. ASH saw higher sales volumes in Personal Care, Specialty Additives and Intermediates segments, partly masked by lower volumes in Life Sciences due to portfolio optimization initiatives. Pricing was weaker year over year in a modestly deflationary raw material environment.
Ashland Inc. Price, Consensus and EPS Surprise
Ashland Inc. price-consensus-eps-surprise-chart | Ashland Inc. Quote
ASH’s Segment Highlights
Life Sciences: Sales in the segment fell 5% from the prior-year quarter to $192 million in the reported quarter. The downside reflects the CMC and nutraceuticals portfolio optimization actions, partly offset by gains in pharma and crop-care sales. The figure was above the Zacks Consensus Estimate of $182.5 million.
Personal Care: Sales in the division were up 11% year over year to $162 million. The upside was driven by higher sales volume in skin care and hair care on an uptick in demand in most regions. The figure missed the Zacks Consensus Estimate of $173.7 million.
Specialty Additives: Sales in the segment were flat year over year at $144 million. Higher volumes in coatings and performance specialties were offset by MC and CMC portfolio optimization and reduced pricing. The figure beat the Zacks Consensus Estimate of $139.7 million.
Intermediates: Sales in the segment went down 3% year over year to $36 million. Merchant sales fell due to lower n-methyl-2-pyrrolidone pricing, partly offset by higher merchant butanediol volumes. The figure beat the Zacks Consensus Estimate of $34 million.
Ashland’s Financials
Operating activities generated $80 million in cash flows in the reported quarter compared with $130 million in the same period last year. Ongoing free cash flow was $88 million, down from $104 million.
ASH’s Outlook
For fiscal 2025, the company expects sales in the range of $1.90-$2.05 billion and adjusted EBITDA to be in the band of $430-$470 million. ASH expects to grow volumes in fiscal 2025 to offset increased pricing competition.
The company noted that it is initiating a restructuring plan to reduce its cost structure, boost manufacturing productivity and cut its product cost, especially in HEC and VP&D businesses.
ASH Stock’s Price Performance
Shares of Ashland have gained 7.7% in the past year compared with the Zacks Chemicals Specialty industry’s 2.8% decline.
ASH’s Zacks Rank & Other Chemicals Releases
ASH currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DuPont de Nemours, Inc. (DD - Free Report) logged adjusted earnings of $1.18 per share in the third quarter, topping the Zacks Consensus Estimate of $1.04. DD raised its full-year 2024 projections for operating EBITDA and adjusted earnings per share.
The Chemours Company (CC - Free Report) recorded adjusted earnings of 40 cents for the third quarter, topping the Zacks Consensus Estimate of 32 cents. CC expects consolidated net sales to decline in the mid to high-single digits sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range compared with third-quarter 2024 results.
PPG Industries, Inc. (PPG - Free Report) logged third-quarter adjusted earnings per share of $2.13, missing the Zacks Consensus Estimate of $2.15. PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for full-year 2024.