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.
Koppers (KOP) Earnings Top Estimates in Q4, Revenues Lag
Read MoreHide Full Article
Koppers Holdings Inc. (KOP - Free Report) logged a loss (attributable to the company) of $2.6 million or 13 cents per share for fourth-quarter 2018, narrower than a loss of $14.8 million or 71 cents a year ago.
Barring one-time items, earnings were 60 cents per share for the quarter, up from 40 cents a year ago. The results topped the Zacks Consensus Estimate of 45 cents.
Koppers recorded revenues of $425.4 million for the quarter, up around 16% year over year, driven by acquisitions. Sales, however, fell short of the Zacks Consensus Estimate of $432 million.
Koppers Holdings Inc. Price, Consensus and EPS Surprise
For 2018, profit was $23.4 million or $1.10 per share, down roughly 20% from $29.1 million or $1.32 per share recorded in 2017. Adjusted earnings per share for the year were $3.50, down from $3.68 a year ago, reflecting higher interest expense and depreciation & amortization costs.
Net sales for the year rose roughly 16% year over year to $1,710.2 million. Barring sales related to acquisitions, sales rose 5%.
Segment Highlights
Revenues from the Railroad and Utility Products and Services segment surged around 50% year over year to $164.2 million in the quarter. The growth was driven by acquisitions, favorable pricing trends for crossties and increased demand for railroad bridge services that more than offset reduced volumes related to utility products in Australia.
The Performance Chemicals unit recorded sales of $99.3 million in the quarter, up around 7% year over year. The increase was aided by a favorable product mix and improved demand in North America.
Revenues from the Carbon Materials and Chemicals division fell around 1% to $161.9 million, impacted by unfavorable currency translation. Barring the currency impact, sales rose roughly 2%, aided by increased demand for carbon pitch in North America and Australia.
Financials
Koppers ended 2018 with cash and cash equivalents of $40.6 million, down around 33% year over year. Long-term debt was $978.8 million, up around 47% year over year.
Capital expenditures for 2018 were $109.7 million, up roughly 63% from $67.5 million a year ago.
Outlook
Moving ahead, Koppers expects sales of around $1.8-$1.9 billion for 2019, based on contributions from the acquisitions made last year and a stronger demand environment in the wood-based technology related businesses, especially Performance Chemicals.
Moreover, Koppers expects adjusted EBITDA to be around $210-$225 million for 2019, compared with roughly $222 million in 2018.
Koppers also expects adjusted earnings for 2019 to be in the range of $2.87 to $3.32 per share factoring in higher interest expenses and depreciation & amortization costs. Effective tax rate for 2019 is projected at around 30%.
As part of its strategic plan, the company is also taking actions to improve profitability by $10 million in 2019. Benefits of around $25-$40 million are also forecast to be realized over the next five years through network optimization, commercial development, and raw materials and other cost savings.
Zacks Rank & Stocks to Consider
Koppers currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space include Kirkland Lake Gold Ltd. , Israel Chemicals Ltd. (ICL - Free Report) and Franco-Nevada Corporation (FNV - Free Report) .
Kirkland Lake Gold has an expected earnings growth rate of 8.8% for the current year and carries a Zacks Rank #1 (Strong Buy). Its shares have shot up around 125% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Israel Chemicals has an expected earnings growth rate of 10.8% for the current year and carries a Zacks Rank #2 (Buy). The company’s shares have rallied around 27% over the past year.
Franco-Nevada has an expected earnings growth rate of 11.2% for the current year and carries a Zacks Rank #2. Its shares have gained roughly 6% in the past year.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Image: Bigstock
Koppers (KOP) Earnings Top Estimates in Q4, Revenues Lag
Koppers Holdings Inc. (KOP - Free Report) logged a loss (attributable to the company) of $2.6 million or 13 cents per share for fourth-quarter 2018, narrower than a loss of $14.8 million or 71 cents a year ago.
Barring one-time items, earnings were 60 cents per share for the quarter, up from 40 cents a year ago. The results topped the Zacks Consensus Estimate of 45 cents.
Koppers recorded revenues of $425.4 million for the quarter, up around 16% year over year, driven by acquisitions. Sales, however, fell short of the Zacks Consensus Estimate of $432 million.
Koppers Holdings Inc. Price, Consensus and EPS Surprise
Koppers Holdings Inc. Price, Consensus and EPS Surprise | Koppers Holdings Inc. Quote
FY18 Results
For 2018, profit was $23.4 million or $1.10 per share, down roughly 20% from $29.1 million or $1.32 per share recorded in 2017. Adjusted earnings per share for the year were $3.50, down from $3.68 a year ago, reflecting higher interest expense and depreciation & amortization costs.
Net sales for the year rose roughly 16% year over year to $1,710.2 million. Barring sales related to acquisitions, sales rose 5%.
Segment Highlights
Revenues from the Railroad and Utility Products and Services segment surged around 50% year over year to $164.2 million in the quarter. The growth was driven by acquisitions, favorable pricing trends for crossties and increased demand for railroad bridge services that more than offset reduced volumes related to utility products in Australia.
The Performance Chemicals unit recorded sales of $99.3 million in the quarter, up around 7% year over year. The increase was aided by a favorable product mix and improved demand in North America.
Revenues from the Carbon Materials and Chemicals division fell around 1% to $161.9 million, impacted by unfavorable currency translation. Barring the currency impact, sales rose roughly 2%, aided by increased demand for carbon pitch in North America and Australia.
Financials
Koppers ended 2018 with cash and cash equivalents of $40.6 million, down around 33% year over year. Long-term debt was $978.8 million, up around 47% year over year.
Capital expenditures for 2018 were $109.7 million, up roughly 63% from $67.5 million a year ago.
Outlook
Moving ahead, Koppers expects sales of around $1.8-$1.9 billion for 2019, based on contributions from the acquisitions made last year and a stronger demand environment in the wood-based technology related businesses, especially Performance Chemicals.
Moreover, Koppers expects adjusted EBITDA to be around $210-$225 million for 2019, compared with roughly $222 million in 2018.
Koppers also expects adjusted earnings for 2019 to be in the range of $2.87 to $3.32 per share factoring in higher interest expenses and depreciation & amortization costs. Effective tax rate for 2019 is projected at around 30%.
As part of its strategic plan, the company is also taking actions to improve profitability by $10 million in 2019. Benefits of around $25-$40 million are also forecast to be realized over the next five years through network optimization, commercial development, and raw materials and other cost savings.
Zacks Rank & Stocks to Consider
Koppers currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space include Kirkland Lake Gold Ltd. , Israel Chemicals Ltd. (ICL - Free Report) and Franco-Nevada Corporation (FNV - Free Report) .
Kirkland Lake Gold has an expected earnings growth rate of 8.8% for the current year and carries a Zacks Rank #1 (Strong Buy). Its shares have shot up around 125% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Israel Chemicals has an expected earnings growth rate of 10.8% for the current year and carries a Zacks Rank #2 (Buy). The company’s shares have rallied around 27% over the past year.
Franco-Nevada has an expected earnings growth rate of 11.2% for the current year and carries a Zacks Rank #2. Its shares have gained roughly 6% in the past year.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>