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Ingevity (NGVT) Down 1.3% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Ingevity (NGVT - Free Report) . Shares have lost about 1.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ingevity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ingevity's Q4 Earnings and Revenues Beat Estimate
Ingevity 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Ingevity has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ingevity has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Ingevity (NGVT) Down 1.3% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Ingevity (NGVT - Free Report) . Shares have lost about 1.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ingevity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ingevity's Q4 Earnings and Revenues Beat Estimate
Ingevity 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Ingevity has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ingevity has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.