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Ashland's (ASH) Earnings & Revenues Surpass Estimates in Q2
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Ashland Global Holdings Inc. (ASH - Free Report) 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.
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 Additives: 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 main 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.
Price Performance
Shares of Ashland have gained 4.7% in the past year compared with an 9.3% decline of the industry.
The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The figure remained stable in the past 60 days.
L.B. Foster is slated to report first-quarter results on May 7. The consensus estimate for FSTR’s first-quarter earnings is pegged at a loss of 16 cents per share. The company’s shares have rallied 114.7% in the past year.
American Vanguard is expected to report first-quarter results on May 14. The consensus estimate for AVD’s first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.
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Ashland's (ASH) Earnings & Revenues Surpass Estimates in Q2
Ashland Global Holdings Inc. (ASH - Free Report) 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.
Ashland Inc. Price, Consensus and EPS Surprise
Ashland Inc. price-consensus-eps-surprise-chart | Ashland Inc. Quote
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 Additives: 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 main 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.
Price Performance
Shares of Ashland have gained 4.7% in the past year compared with an 9.3% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
ASH currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Gold Fields Limited (GFI - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and L.B. Foster Company (FSTR - Free Report) and American Vanguard Corporation (AVD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The figure remained stable in the past 60 days.
L.B. Foster is slated to report first-quarter results on May 7. The consensus estimate for FSTR’s first-quarter earnings is pegged at a loss of 16 cents per share. The company’s shares have rallied 114.7% in the past year.
American Vanguard is expected to report first-quarter results on May 14. The consensus estimate for AVD’s first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.