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Koppers (KOP) Earnings Surpass Estimate in Q1, Sales Lag

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Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $25.9 million or $1.18 per share for the first quarter of 2021 against a loss of $1.4 million or 7 cents a year ago.

Barring one-time items, adjusted earnings were $1.02 per share for the quarter, up from 47 cents per share a year ago. Earnings topped the Zacks Consensus Estimate of 57 cents.

Koppers recorded revenues of $407.5 million for the quarter, up around 1% year over year. It trailed the Zacks Consensus Estimate of $407.9 million. Sales were supported by favorable impacts of currency swings.

 

Koppers Holdings Inc. Price, Consensus and EPS Surprise

 

Koppers Holdings Inc. Price, Consensus and EPS Surprise

Koppers Holdings Inc. price-consensus-eps-surprise-chart | Koppers Holdings Inc. Quote

 

Segment Highlights

Sales from the Railroad and Utility Products and Services segment went up around 1% year over year to $191.9 million in the reported quarter. Higher Class I volume, strong demand in the railroad bridge services business and increased activity in the crosstie disposal business were offset by declines in the commercial crosstie market.

The Performance Chemicals unit recorded sales of $123.6 million in the quarter, up around 11% year over year. Sales were driven by higher demand for copper-based preservatives in the United States due to a revival in home repair and remodeling activities amid the pandemic. International markets also witnessed higher volumes on improved industrial and agricultural demand.

Sales from the Carbon Materials and Chemicals division fell around 9% year over year to $92 million. Sales were impacted by lower volumes for phthalic anhydride in the United States, reduced pricing and volumes for carbon pitch globally as well as lower volumes for carbon black feedstock in Australia.

Financials

Koppers ended the quarter with cash and cash equivalents of $44.2 million, down around 18% year over year. Long-term debt was $801 million, down around 15% year over year.

Outlook

Koppers envisions sales for 2021 to be roughly $1.7-$1.8 billion. The company also expects adjusted EBITDA to be in the band of $220-$230 million for the year. Moreover, Koppers sees adjusted earnings per share for 2021 in the range of $4.35-$4.60.

The company also expects investments of $105-$115 million in capital expenditures this year.

Price Performance

Koppers’ shares have rallied 176.5% over a year compared with 77.9% rise recorded by the industry.

 

 

Zacks Rank & Key Picks

Koppers currently carries a Zacks Rank #2 (Buy)

Other top-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 159% 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 103% 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 230% in the past year. It currently carries a Zacks Rank #1.

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