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Ashland (ASH) Issues Updates on Outlook for Q3 and Fiscal 2021
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Ashland Global Holdings Inc. (ASH - Free Report) recently announced an update for preliminary third-quarter fiscal 2021 and full-year financial results.
Economic recovery in the United States and other regions of the world is leading to strong demand for most products in the company’s Life Sciences, Personal Care and Household as well as Specialty Additives end markets, Ashland noted.
However, restricted availability of some raw materials as well as shipping, logistics and packaging challenges are offsetting demand. These factors continue to restrict the company’s ability to rebuild global inventories and meet overall customer demand. Moreover, inefficiencies in supply chain are leading to higher costs. These are expected to impact the company’s financial results in the fiscal third quarter.
The company expects $5-$10 million of adjusted EBITDA pressure in fiscal third-quarter. The company anticipates these factors to stabilize in fiscal fourth quarter. Also, Ashland reaffirmed its adjusted EBITDA guidance for fiscal 2021 at $570-$590 million.
Ashland’s Performance Adhesives segment is also being affected by high raw-material cost and restricted availability. This is impacting the company’s ability to meet customer demand. Ashland is undertaking pricing actions to offset the impact of high raw material costs.
Shares of Ashland have gained 39.2% in the past year against 14.3% fall of the industry.
Image Source: Zacks Investment Research
The company’s results in second-quarter fiscal 2021, were hurt by weather-related disruptions in the U.S. Gulf Coast and changing consumer habits amid the coronavirus pandemic. Ashland’s adjusted earnings at $1.05 per share missed the Zacks Consensus Estimate of $1.36 per share.
Sales were down around 2% year over year to $598 million, missing the Zacks Consensus Estimate of $632.6 million. However, Ashland benefited from improved industrial demand and cost-reduction actions.
Zacks Rank & Key Picks
Ashland currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Olin Corporation (OLN - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 260% for the current year. The company’s shares have surged 158.1% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has an expected earnings growth rate of around 502.9% for the current year. The company’s shares have skyrocketed 266.9% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 72.3% in the past year. It currently carries a Zacks Rank #2 (Buy).
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Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
Ashland (ASH) Issues Updates on Outlook for Q3 and Fiscal 2021
Ashland Global Holdings Inc. (ASH - Free Report) recently announced an update for preliminary third-quarter fiscal 2021 and full-year financial results.
Economic recovery in the United States and other regions of the world is leading to strong demand for most products in the company’s Life Sciences, Personal Care and Household as well as Specialty Additives end markets, Ashland noted.
However, restricted availability of some raw materials as well as shipping, logistics and packaging challenges are offsetting demand. These factors continue to restrict the company’s ability to rebuild global inventories and meet overall customer demand. Moreover, inefficiencies in supply chain are leading to higher costs. These are expected to impact the company’s financial results in the fiscal third quarter.
The company expects $5-$10 million of adjusted EBITDA pressure in fiscal third-quarter. The company anticipates these factors to stabilize in fiscal fourth quarter. Also, Ashland reaffirmed its adjusted EBITDA guidance for fiscal 2021 at $570-$590 million.
Ashland’s Performance Adhesives segment is also being affected by high raw-material cost and restricted availability. This is impacting the company’s ability to meet customer demand. Ashland is undertaking pricing actions to offset the impact of high raw material costs.
Shares of Ashland have gained 39.2% in the past year against 14.3% fall of the industry.
The company’s results in second-quarter fiscal 2021, were hurt by weather-related disruptions in the U.S. Gulf Coast and changing consumer habits amid the coronavirus pandemic. Ashland’s adjusted earnings at $1.05 per share missed the Zacks Consensus Estimate of $1.36 per share.
Sales were down around 2% year over year to $598 million, missing the Zacks Consensus Estimate of $632.6 million. However, Ashland benefited from improved industrial demand and cost-reduction actions.
Zacks Rank & Key Picks
Ashland currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Olin Corporation (OLN - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 260% for the current year. The company’s shares have surged 158.1% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin has an expected earnings growth rate of around 502.9% for the current year. The company’s shares have skyrocketed 266.9% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 72.3% in the past year. It currently carries a Zacks Rank #2 (Buy).
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>