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Ingevity's (NGVT) Q4 Earnings and Revenues Beat Estimate
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Ingevity Corporation (NGVT - Free Report) recorded profits of $29.3 million or 74 cents per share in fourth-quarter 2021, down from a profit of $46 million or $1.11 in the year-ago quarter.
Excluding one-time items, adjusted earnings in the quarter were 78 cents per share, down from $1.33 a year ago. The figure beat the Zacks Consensus Estimate of 71 cents.
The company’s top line rose 3.2% year over year to $336 million in the quarter, beating the Zacks Consensus Estimate of $291.5 million. In the fourth quarter, Ingevity benefited from higher volumes in the Performance Chemicals segment as well as higher selling prices in Engineered Polymers and Industrial Specialties. It faced headwinds in the form of raw material cost inflation, supply chain disruptions, and continued microchip shortages.
Adjusted EBITDA fell 28.2% year over year to $79.6 million in the quarter.
Ingevity Corporation Price, Consensus and EPS Surprise
The Performance Chemicals division generated revenues of $204 million in the reported quarter, rising 23.7% year over year, mainly on strong volumes and price increases. The company witnessed double-digit growth in a majority of its markets and continued to grow demand for higher-value derivatized products in all three businesses.
Revenues in the Performance Materials unit fell 17.9% year over year to $132 million due to lower automotive production, reducing sales of Ingevity’s high-value auto emission products.
FY21 Results
Earnings (as reported) for full-year 2021 were $2.95 per share compared with $4.37 per share a year ago. Net sales rose 14.4% year over year to $1,391.5 million.
Balance Sheet
Ingevity ended the year with cash and cash equivalents of $275.4 million, up 6.9% year over year. Long-term debt was $1,250 million, down 1.4% year over year.
Outlook
The company announced guidance for full-year 2022 sales in the range of $1.525-$1.6 billion and adjusted EBITDA between $430 million and $460 million.
The company expects Performance Chemicals revenues to outpace ongoing energy, logistics and raw materials inflation. The guidance reflects its modest outlook for Performance Materials as it expects vehicle production will continue to be constrained by the persistent microchip shortage and other automotive supply chain issues. It will continue to optimize its operations and inventory to provide outstanding service to customers. It is also committed to capturing the maximum value for its products.
Price Performance
Shares of Ingevity have declined 5% in a year against a 15.2% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Ingevity currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Allegheny Technologies Incorporated (ATI - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Allegheny, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 15.2% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 62.3% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 11.5% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 34.9% in a year.
AdvanSix has a projected earnings growth rate of 7.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 23.6%. ASIX has surged 26.6% over a year. The company carries a Zacks Rank #2.
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Ingevity's (NGVT) Q4 Earnings and Revenues Beat Estimate
Ingevity Corporation (NGVT - Free Report) recorded profits of $29.3 million or 74 cents per share in fourth-quarter 2021, down from a profit of $46 million or $1.11 in the year-ago quarter.
Excluding one-time items, adjusted earnings in the quarter were 78 cents per share, down from $1.33 a year ago. The figure beat the Zacks Consensus Estimate of 71 cents.
The company’s top line rose 3.2% year over year to $336 million in the quarter, beating the Zacks Consensus Estimate of $291.5 million. In the fourth quarter, Ingevity benefited from higher volumes in the Performance Chemicals segment as well as higher selling prices in Engineered Polymers and Industrial Specialties. It faced headwinds in the form of raw material cost inflation, supply chain disruptions, and continued microchip shortages.
Adjusted EBITDA fell 28.2% year over year to $79.6 million in the quarter.
Ingevity Corporation Price, Consensus and EPS Surprise
Ingevity Corporation price-consensus-eps-surprise-chart | Ingevity Corporation Quote
Segment Review
The Performance Chemicals division generated revenues of $204 million in the reported quarter, rising 23.7% year over year, mainly on strong volumes and price increases. The company witnessed double-digit growth in a majority of its markets and continued to grow demand for higher-value derivatized products in all three businesses.
Revenues in the Performance Materials unit fell 17.9% year over year to $132 million due to lower automotive production, reducing sales of Ingevity’s high-value auto emission products.
FY21 Results
Earnings (as reported) for full-year 2021 were $2.95 per share compared with $4.37 per share a year ago. Net sales rose 14.4% year over year to $1,391.5 million.
Balance Sheet
Ingevity ended the year with cash and cash equivalents of $275.4 million, up 6.9% year over year. Long-term debt was $1,250 million, down 1.4% year over year.
Outlook
The company announced guidance for full-year 2022 sales in the range of $1.525-$1.6 billion and adjusted EBITDA between $430 million and $460 million.
The company expects Performance Chemicals revenues to outpace ongoing energy, logistics and raw materials inflation. The guidance reflects its modest outlook for Performance Materials as it expects vehicle production will continue to be constrained by the persistent microchip shortage and other automotive supply chain issues. It will continue to optimize its operations and inventory to provide outstanding service to customers. It is also committed to capturing the maximum value for its products.
Price Performance
Shares of Ingevity have declined 5% in a year against a 15.2% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Ingevity currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Allegheny Technologies Incorporated (ATI - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Allegheny, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 15.2% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 62.3% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 11.5% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 34.9% in a year.
AdvanSix has a projected earnings growth rate of 7.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 23.6%. ASIX has surged 26.6% over a year. The company carries a Zacks Rank #2.