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Ingevity (NGVT) Beats Earnings & Revenue Estimates in Q3
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Ingevity Corporation (NGVT - Free Report) recorded a profit (attributable to stockholders) of $49.5 million or $1.16 per share in third-quarter 2018, surging roughly 46% from $33.8 million or 79 cents a year ago. Earnings per share surpassed the Zacks Consensus Estimate of $1.04.
The company’s revenues rose roughly 18% year over year to $311.2 million in the quarter, coming ahead of the Zacks Consensus Estimate of $305.5 million.
Adjusted EBITDA climbed roughly 25% year over year to $90.7 million in the quarter on the back of increased volumes, better price and mix, and reduced raw materials and production costs.
The chemical maker gained from higher demand across its businesses, contributions of Georgia-Pacific pine chemicals acquisition, and excellent operational performance and execution.
Ingevity Corporation Price, Consensus and EPS Surprise
Revenues from the Performance Chemicals division jumped around 20% year over year to $214.9 million in the quarter. Revenues were driven by sales growth in oilfield industry on the back of higher U.S. drilling and production, along with strong overall sales of the company’s pavement technologies.
Revenues from the Performance Materials unit went up around 13% to $96.3 million. The growth was supported by sustained adoption of the company’s solutions geared to meet the U.S. EPA Tier 3 and California LEV III emission regulations.
Balance Sheet
Ingevity ended the quarter with cash and cash equivalents of $57.5 million, down around 18% year over year. Long-term debt was $744 million, up around 66%.
Outlook
Ingevity increased the mid-point and narrowed the range for its 2018 guidance for adjusted EBITDA to $306-$314 million from $302-$314 million. The company reaffirmed its sales guidance of between $1.10 billion and $1.13 billion for the year.
Price Performance
Shares of Ingevity have rallied 26.6% over a year, significantly outperforming the industry’s 9.4% decline.
Methanex has an expected long-term earnings growth rate of 15%. The company’s shares have rallied around 28% over a year.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. The company’s shares are up roughly 37% over a year.
CF Industries has an expected long-term earnings growth rate of 6%. The company’s shares have gained around 21% in a year’s time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Ingevity (NGVT) Beats Earnings & Revenue Estimates in Q3
Ingevity Corporation (NGVT - Free Report) recorded a profit (attributable to stockholders) of $49.5 million or $1.16 per share in third-quarter 2018, surging roughly 46% from $33.8 million or 79 cents a year ago. Earnings per share surpassed the Zacks Consensus Estimate of $1.04.
The company’s revenues rose roughly 18% year over year to $311.2 million in the quarter, coming ahead of the Zacks Consensus Estimate of $305.5 million.
Adjusted EBITDA climbed roughly 25% year over year to $90.7 million in the quarter on the back of increased volumes, better price and mix, and reduced raw materials and production costs.
The chemical maker gained from higher demand across its businesses, contributions of Georgia-Pacific pine chemicals acquisition, and excellent operational performance and execution.
Ingevity Corporation Price, Consensus and EPS Surprise
Ingevity Corporation price-consensus-eps-surprise-chart | Ingevity Corporation Quote
Segment Review
Revenues from the Performance Chemicals division jumped around 20% year over year to $214.9 million in the quarter. Revenues were driven by sales growth in oilfield industry on the back of higher U.S. drilling and production, along with strong overall sales of the company’s pavement technologies.
Revenues from the Performance Materials unit went up around 13% to $96.3 million. The growth was supported by sustained adoption of the company’s solutions geared to meet the U.S. EPA Tier 3 and California LEV III emission regulations.
Balance Sheet
Ingevity ended the quarter with cash and cash equivalents of $57.5 million, down around 18% year over year. Long-term debt was $744 million, up around 66%.
Outlook
Ingevity increased the mid-point and narrowed the range for its 2018 guidance for adjusted EBITDA to $306-$314 million from $302-$314 million. The company reaffirmed its sales guidance of between $1.10 billion and $1.13 billion for the year.
Price Performance
Shares of Ingevity have rallied 26.6% over a year, significantly outperforming the industry’s 9.4% decline.
Zacks Rank and Stocks to Consider
Ingevity currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include Methanex Corporation (MEOH - Free Report) , KMG Chemicals, Inc. and CF Industries Holdings, Inc. (CF - Free Report) , each carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Methanex has an expected long-term earnings growth rate of 15%. The company’s shares have rallied around 28% over a year.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. The company’s shares are up roughly 37% over a year.
CF Industries has an expected long-term earnings growth rate of 6%. The company’s shares have gained around 21% in a year’s time.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>