Ingevity Corporation ( NGVT Quick Quote NGVT - Free Report) logged profits of $48.7 million or $1.20 per share in first-quarter 2021, up around 8% from $45.3 million or $1.08 per share a year ago. Adjusted earnings per share for the reported quarter were $1.27, surpassing the Zacks Consensus Estimate of $1.07. The company’s revenues rose around 11% year over year to $320.3 million in the quarter. The top line also beat the Zacks Consensus Estimate of $293 million. The company benefited, in the first quarter, from higher demand across its businesses. It saw a strong rise in automotive-based activated carbon sales and a significant growth in engineered polymers across several applications. Adjusted EBITDA went up around 14% year over year to $105.4 million in the quarter.
Revenues from the Performance Chemicals division rose around 8% year over year to $179.6 million in the quarter under review. The company witnessed strong sales growth in engineered polymers and modest rise in industrial specialties and pavement technologies sales.
Revenues from the Performance Materials unit climbed 16% year over year to $140.7 million. Strong global automotive sales drove growth for the company’s activated carbon products used in gasoline vapor emission control systems. Balance Sheet
Ingevity ended the quarter with cash and cash equivalents of $237.8 million, down roughly 21% year over year. Long-term debt was $1,263.1 million, down around 14% year over year.
The company raised its outlook for sales for 2021 to $1.275-$1.325 billion from $1.25-$1.30 billion expected earlier. It also now anticipates adjusted EBITDA of $410-$430 million, up from the prior view of $400-$420 million.
Shares of Ingevity have gained 68.8% in the past year against the
industry’s growth of 32.4%.
Zacks Rank & Key Picks
Ingevity currently carries a Zacks Rank #2 (Buy).
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