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.
Ashland's (ASH) Earnings and Sales Surpass Estimates in Q1
Read MoreHide Full Article
Ashland Global Holdings Inc. (ASH - Free Report) logged profits of $56 million or 91 cents per share in the first quarter of fiscal 2021 (ended Dec 31, 2020), up from a profit of $32 million or 53 cents per share in the prior-year quarter.
Barring one-time items, adjusted earnings came in at 66 cents per share. It topped the Zacks Consensus Estimate of 44 cents per share.
Sales were up around 4% year over year to $552 million, surpassing the Zacks Consensus Estimate of $543.4 million. The company saw higher sales across its business segments in the quarter. It benefited from strong overall demand and cost-reduction actions in the quarter. Its industrial businesses continued to witness strong demand recovery.
Ashland Global Holdings Inc. Price, Consensus and EPS Surprise
Consumer Specialties: Sales in the segment rose 1% year over year to $296 million in the reported quarter. The company saw strong demand in most consumer end markets. This was offset by its exit from lower-margin product lines and continued challenges in Avoca.
Industrial Specialties: Sales in the division rose 8% year over year to $231 million on the back of improved demand for architectural coatings, construction and adhesive applications.
Intermediates & Solvents: Sales in the segment climbed 18% year over year to $33 million, driven by normalized internal sales volumes.
Financials
Cash and cash equivalents more than doubled year over year to $335 million at the end of the quarter. Long-term debt was $1,601 million at the end of the quarter, up around 7% year over year.
Cash provided by operating activities was $106 million in the reported quarter. Free cash flow was $76 million for the quarter.
Outlook
Ashland said that its first-quarter results demonstrate progress made by it towards strategic discipline, consistent organic growth, margin expansion and improved free cash flow conversion. It expects to deliver consistent results moving ahead notwithstanding the impacts of the coronavirus pandemic on global supply chains and consumer behavior.
Price Performance
Shares of the company are up 11.7% in the past year against the industry’s 12.9% growth.
Zacks Rank & Key Picks
Ashland currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Fortescue Metals Group Limited (FSUGY - Free Report) , Impala Platinum Holdings Limited (IMPUY - Free Report) and New Gold Inc. (NGD - Free Report) .
Fortescue has a projected earnings growth rate of 75.5% for the current fiscal. The company’s shares have surged around 124% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Impala Platinum has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 37% in the past year. It currently carries a Zacks Rank #1.
New Gold has a projected earnings growth rate of 658.3% for the current year. The company’s shares have shot up around 120% in a year. It currently carries a Zacks Rank #2 (Buy).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Ashland's (ASH) Earnings and Sales Surpass Estimates in Q1
Ashland Global Holdings Inc. (ASH - Free Report) logged profits of $56 million or 91 cents per share in the first quarter of fiscal 2021 (ended Dec 31, 2020), up from a profit of $32 million or 53 cents per share in the prior-year quarter.
Barring one-time items, adjusted earnings came in at 66 cents per share. It topped the Zacks Consensus Estimate of 44 cents per share.
Sales were up around 4% year over year to $552 million, surpassing the Zacks Consensus Estimate of $543.4 million. The company saw higher sales across its business segments in the quarter. It benefited from strong overall demand and cost-reduction actions in the quarter. Its industrial businesses continued to witness strong demand recovery.
Ashland Global Holdings Inc. Price, Consensus and EPS Surprise
Ashland Global Holdings Inc. price-consensus-eps-surprise-chart | Ashland Global Holdings Inc. Quote
Segment Highlights
Consumer Specialties: Sales in the segment rose 1% year over year to $296 million in the reported quarter. The company saw strong demand in most consumer end markets. This was offset by its exit from lower-margin product lines and continued challenges in Avoca.
Industrial Specialties: Sales in the division rose 8% year over year to $231 million on the back of improved demand for architectural coatings, construction and adhesive applications.
Intermediates & Solvents: Sales in the segment climbed 18% year over year to $33 million, driven by normalized internal sales volumes.
Financials
Cash and cash equivalents more than doubled year over year to $335 million at the end of the quarter. Long-term debt was $1,601 million at the end of the quarter, up around 7% year over year.
Cash provided by operating activities was $106 million in the reported quarter. Free cash flow was $76 million for the quarter.
Outlook
Ashland said that its first-quarter results demonstrate progress made by it towards strategic discipline, consistent organic growth, margin expansion and improved free cash flow conversion. It expects to deliver consistent results moving ahead notwithstanding the impacts of the coronavirus pandemic on global supply chains and consumer behavior.
Price Performance
Shares of the company are up 11.7% in the past year against the industry’s 12.9% growth.
Zacks Rank & Key Picks
Ashland currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Fortescue Metals Group Limited (FSUGY - Free Report) , Impala Platinum Holdings Limited (IMPUY - Free Report) and New Gold Inc. (NGD - Free Report) .
Fortescue has a projected earnings growth rate of 75.5% for the current fiscal. The company’s shares have surged around 124% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Impala Platinum has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 37% in the past year. It currently carries a Zacks Rank #1.
New Gold has a projected earnings growth rate of 658.3% for the current year. The company’s shares have shot up around 120% in a year. It currently carries a Zacks Rank #2 (Buy).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>