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Quaker Chemical (KWR) Earnings & Sales Surpass Estimates in Q1
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Quaker Chemical Corporation (KWR - Free Report) recorded profits of $38.6 million or $2.15 per share in the first quarter of 2021, compared with a loss of $28.4 million or $1.60 a year ago.
Barring one-time items, earnings came in at $2.11 per share for the reported quarter. It topped the Zacks Consensus Estimate of $1.51.
Net sales rose around 14% year over year to $429.8 million in the quarter. It, beat the Zacks Consensus Estimate of $385.8 million. The company saw higher sales across all of its segments.
Sales rose mainly due to increased volumes, including additional net sales from acquisitions of 3%, and favorable foreign currency translation impact of 3%. Volumes were driven by strong demand in the company’s end markets and market share gains. Additional net sales from acquisitions were mainly attributable to the buyout of Coral Chemical in late 2020.
Quaker Chemical Corporation Price, Consensus and EPS Surprise
The company ended the quarter with cash and cash equivalents of $163.5 million, down roughly 48% year over year. Long-term debt was $859.4 million, down around 20% year over year.
Net cash used in operating activities was $12.6 million for the quarter.
Outlook
The company saw higher raw material prices in the first quarter and expects sustained increase in the second quarter. It expects the results for the second quarter to be lower on a sequential comparison basis due to the lag effect (lag between the price increase initiatives and raw material cost changes) on its gross margin and lower expected volumes. However, it sees gross margins to improve sequentially in the third and fourth quarters as its price increase actions catch up to increases in raw material costs.
Price Performance
Quaker Chemical’s shares have rallied 61.7% in the past year compared with industry’s 2.9% decline.
Zacks Rank & Key Picks
Quaker Chemical currently carries a Zacks Rank #3 (Hold)
Better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 143% 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.
Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 104% in a year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 253% in the past year. It currently carries a Zacks Rank #1.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Quaker Chemical (KWR) Earnings & Sales Surpass Estimates in Q1
Quaker Chemical Corporation (KWR - Free Report) recorded profits of $38.6 million or $2.15 per share in the first quarter of 2021, compared with a loss of $28.4 million or $1.60 a year ago.
Barring one-time items, earnings came in at $2.11 per share for the reported quarter. It topped the Zacks Consensus Estimate of $1.51.
Net sales rose around 14% year over year to $429.8 million in the quarter. It, beat the Zacks Consensus Estimate of $385.8 million. The company saw higher sales across all of its segments.
Sales rose mainly due to increased volumes, including additional net sales from acquisitions of 3%, and favorable foreign currency translation impact of 3%. Volumes were driven by strong demand in the company’s end markets and market share gains. Additional net sales from acquisitions were mainly attributable to the buyout of Coral Chemical in late 2020.
Quaker Chemical Corporation Price, Consensus and EPS Surprise
Quaker Chemical Corporation price-consensus-eps-surprise-chart | Quaker Chemical Corporation Quote
Financials
The company ended the quarter with cash and cash equivalents of $163.5 million, down roughly 48% year over year. Long-term debt was $859.4 million, down around 20% year over year.
Net cash used in operating activities was $12.6 million for the quarter.
Outlook
The company saw higher raw material prices in the first quarter and expects sustained increase in the second quarter. It expects the results for the second quarter to be lower on a sequential comparison basis due to the lag effect (lag between the price increase initiatives and raw material cost changes) on its gross margin and lower expected volumes. However, it sees gross margins to improve sequentially in the third and fourth quarters as its price increase actions catch up to increases in raw material costs.
Price Performance
Quaker Chemical’s shares have rallied 61.7% in the past year compared with industry’s 2.9% decline.
Zacks Rank & Key Picks
Quaker Chemical currently carries a Zacks Rank #3 (Hold)
Better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 143% 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.
Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 104% in a year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 253% in the past year. It currently carries a Zacks Rank #1.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>