We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Innophos Holdings (IPHS) Stock Up 15% in 3 Months: Here's Why
Read MoreHide Full Article
Shares of Innophos Holdings, Inc. have gained around 15% over the last three months. The company has also outperformed its industry’s gain of roughly 8.9% to over the same time frame.
Innophos, a Zacks Rank #3 (Hold) stock, has a market cap of roughly $963 million and average volume of shares traded in the last three months is around 99.3K. Innophos has an impressive earnings surprise history. The company has outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 13.1%.
Let’s take a look into the factors that are driving this chemical maker of late.
Driving Factors
Strong second-quarter 2017 results, healthy outlook and upbeat prospects stemming from Novel Ingredients acquisition have provided a boost to Innophos’ shares. The company delivered a positive earnings surprise of 9.6% in the second quarter.
Innophos expects earnings in the third quarter to be positively impacted (on a sequential comparison basis) by cost savings from Phase 2 operational excellence and reduced implementation fees. The company expects to realize $5 million of the identified $13 million Phase 2 operational excellence cost savings in second-half 2017. The company should also gain from favorable sales volume trends in the second half.
Innophos remains actively focused on cost savings which is driving its margins, as witnessed in the second quarter. The company also remains committed to improve productivity.
Moreover, the acquisition of Novel Ingredients, a provider of dietary supplement ingredient solutions, has offered a compelling opportunity. The acquisition reinforces Innophos’ position as a leading provider of vital ingredient solutions by combining technological capabilities and expanding product portfolio. The buyout will also help the company to develop innovative ingredient solutions more effectively and serve customers in a better way.
The acquisition also expands Innophos' portfolio in the high-growth nutrition end markets and creates a $0.5 billion Food, Health and Nutrition (FHN) platform, which represents roughly 60% of revenues for the combined entity.
Innophos expects the acquisition to be accretive to its earnings per share in the first year following the completion of the transaction and create significant value for shareholders and customers in the long term.
Ingevity has expected long-term earnings growth of 12%.
Chemours has expected long-term earnings growth of 15.5%.
FMC has expected earnings growth of 11.3% for the current year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Innophos Holdings (IPHS) Stock Up 15% in 3 Months: Here's Why
Shares of Innophos Holdings, Inc. have gained around 15% over the last three months. The company has also outperformed its industry’s gain of roughly 8.9% to over the same time frame.
Innophos, a Zacks Rank #3 (Hold) stock, has a market cap of roughly $963 million and average volume of shares traded in the last three months is around 99.3K. Innophos has an impressive earnings surprise history. The company has outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 13.1%.
Let’s take a look into the factors that are driving this chemical maker of late.
Driving Factors
Strong second-quarter 2017 results, healthy outlook and upbeat prospects stemming from Novel Ingredients acquisition have provided a boost to Innophos’ shares. The company delivered a positive earnings surprise of 9.6% in the second quarter.
Innophos expects earnings in the third quarter to be positively impacted (on a sequential comparison basis) by cost savings from Phase 2 operational excellence and reduced implementation fees. The company expects to realize $5 million of the identified $13 million Phase 2 operational excellence cost savings in second-half 2017. The company should also gain from favorable sales volume trends in the second half.
Innophos remains actively focused on cost savings which is driving its margins, as witnessed in the second quarter. The company also remains committed to improve productivity.
Moreover, the acquisition of Novel Ingredients, a provider of dietary supplement ingredient solutions, has offered a compelling opportunity. The acquisition reinforces Innophos’ position as a leading provider of vital ingredient solutions by combining technological capabilities and expanding product portfolio. The buyout will also help the company to develop innovative ingredient solutions more effectively and serve customers in a better way.
The acquisition also expands Innophos' portfolio in the high-growth nutrition end markets and creates a $0.5 billion Food, Health and Nutrition (FHN) platform, which represents roughly 60% of revenues for the combined entity.
Innophos expects the acquisition to be accretive to its earnings per share in the first year following the completion of the transaction and create significant value for shareholders and customers in the long term.
Innophos Holdings, Inc. Price and Consensus
Innophos Holdings, Inc. Price and Consensus | Innophos Holdings, Inc. Quote
Stocks to Consider
Stocks in the basic materials space worth considering include Ingevity Corporation (NGVT - Free Report) , The Chemours Company (CC - Free Report) and FMC Corporation (FMC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingevity has expected long-term earnings growth of 12%.
Chemours has expected long-term earnings growth of 15.5%.
FMC has expected earnings growth of 11.3% for the current year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>