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Koppers' (KOP) Q4 Earnings Top Estimates, Revenues Miss
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Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $22.2 million or $1.02 per share for the fourth quarter of 2021, up from a profit of $18.6 million or 86 cents a year ago.
Barring one-time items, adjusted earnings were 77 cents per share for the quarter, up from 75 cents per share a year ago. It topped the Zacks Consensus Estimate of 67 cents.
Koppers recorded revenues of $405.3 million for the quarter, up around 3% year over year. Revenues however trailed the Zacks Consensus Estimate of $411.7 million. Lower sales across Railroad and Utility Products and Services (“RUPS”) and Performance Chemicals (“PC”) units were offset by significantly higher sales in the Carbon Materials and Chemicals (“CMC”) segment.
Koppers Holdings Inc. Price, Consensus and EPS Surprise
Sales from the RUPS segment fell around 8% year over year to $155.6 million in the reported quarter. Sales were impacted by a decline in crosstie volumes from Class I and commercial customers, reduced volumes for utility poles in the United States and Australia that more than offset higher prices.
The PC segment recorded sales of $118.9 million in the quarter, down around 9% year over year. Sales were hurt by reduced volumes of preservatives in North America, partly offset by increased demand in international markets.
Sales from the CMC division rose around 38% year over year to $130.8 million. Sales were driven by higher pricing for carbon pitch, distillates and chemicals that more than offset reduced sales volumes of carbon black feedstock in certain regions.
FY21 Results
Earnings (as reported) for full-year 2021 were $3.90 per share compared with $4.17 per share a year ago. Revenues were $1,678.6 million for the full year, up around 0.5% year over year.
Financials
Koppers ended 2021 with cash and cash equivalents of $45.5 million, up around 18% year over year. Long-term debt was $781.5 million, up around 2% year over year.
Outlook
Koppers noted that it remains focused on driving improvements through the execution of its strategic initiatives and making progress toward its long-term financial goals.
The company anticipated sales for 2022 to be roughly $1.8 billion. It also expects adjusted EBITDA to be around $230 million for the year. Koppers sees adjusted earnings per share for 2022 to be around $4.25.
The company also expects investments of roughly $95 million in capital expenditures this year.
Price Performance
Koppers’ shares are down 16.8% over a year compared with 5.3% rise recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Koppers carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space include Commercial Metals Company (CMC - Free Report) , Cabot Corporation (CBT - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 22.7% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing the same once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 36% in a year.
Cabot, carrying a Zacks Rank #1, has an expected earnings growth rate of 15.4% for the current fiscal year. CBT's consensus estimate for the current fiscal year has been revised 7.8% upward over the past 60 days.
Cabot beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 21.6%. CBT shares have gained around 45% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected 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 each of the trailing four quarters, the average being 46.9%. ASIX has gained around 27% in a year.
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Koppers' (KOP) Q4 Earnings Top Estimates, Revenues Miss
Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $22.2 million or $1.02 per share for the fourth quarter of 2021, up from a profit of $18.6 million or 86 cents a year ago.
Barring one-time items, adjusted earnings were 77 cents per share for the quarter, up from 75 cents per share a year ago. It topped the Zacks Consensus Estimate of 67 cents.
Koppers recorded revenues of $405.3 million for the quarter, up around 3% year over year. Revenues however trailed the Zacks Consensus Estimate of $411.7 million. Lower sales across Railroad and Utility Products and Services (“RUPS”) and Performance Chemicals (“PC”) units were offset by significantly higher sales in the Carbon Materials and Chemicals (“CMC”) segment.
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 RUPS segment fell around 8% year over year to $155.6 million in the reported quarter. Sales were impacted by a decline in crosstie volumes from Class I and commercial customers, reduced volumes for utility poles in the United States and Australia that more than offset higher prices.
The PC segment recorded sales of $118.9 million in the quarter, down around 9% year over year. Sales were hurt by reduced volumes of preservatives in North America, partly offset by increased demand in international markets.
Sales from the CMC division rose around 38% year over year to $130.8 million. Sales were driven by higher pricing for carbon pitch, distillates and chemicals that more than offset reduced sales volumes of carbon black feedstock in certain regions.
FY21 Results
Earnings (as reported) for full-year 2021 were $3.90 per share compared with $4.17 per share a year ago. Revenues were $1,678.6 million for the full year, up around 0.5% year over year.
Financials
Koppers ended 2021 with cash and cash equivalents of $45.5 million, up around 18% year over year. Long-term debt was $781.5 million, up around 2% year over year.
Outlook
Koppers noted that it remains focused on driving improvements through the execution of its strategic initiatives and making progress toward its long-term financial goals.
The company anticipated sales for 2022 to be roughly $1.8 billion. It also expects adjusted EBITDA to be around $230 million for the year. Koppers sees adjusted earnings per share for 2022 to be around $4.25.
The company also expects investments of roughly $95 million in capital expenditures this year.
Price Performance
Koppers’ shares are down 16.8% over a year compared with 5.3% rise recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Koppers carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space include Commercial Metals Company (CMC - Free Report) , Cabot Corporation (CBT - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 22.7% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing the same once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 36% in a year.
Cabot, carrying a Zacks Rank #1, has an expected earnings growth rate of 15.4% for the current fiscal year. CBT's consensus estimate for the current fiscal year has been revised 7.8% upward over the past 60 days.
Cabot beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 21.6%. CBT shares have gained around 45% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected 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 each of the trailing four quarters, the average being 46.9%. ASIX has gained around 27% in a year.