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Ashland (ASH) Updates Q2 Earnings and Affirms FY22 Outlook
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Ashland Global Holdings Inc. (ASH - Free Report) recently provided an update for preliminary second-quarter fiscal 2022 financial results and affirmed its outlook for the fiscal year 2022 results.
The company’s performance during the quarter was driven by continued strong end-market demand, disciplined pricing and product mix actions. These factors more than offset additional inflation in raw-material, freight and energy costs and constant supply-chain and labor-availability issues affecting shipments and on-time order delivery.
Per the company, sales for the quarter amounted to nearly $604 million, up around 19% from the prior year quarter’s levels. The company’s segments recorded double-digit sales growth compared to the previous year, aided by strong end-market demand, higher pricing and improved product mix.
Ashland forecasts income from continuing operations for the second fiscal quarter of roughly $38 million, or 66 cents per share. The net income is anticipated to be around $786 million. The company’s adjusted EBITDA is expected to be roughly $163 million, suggesting a rise of around 41% from the prior year’s levels. The upside might be attributed to higher sales and expanded operating margins.
For fiscal 2022, the company’s financial guidance for sales remains the same in the range of $2.25-$2.35 billion. Adjusted EBITDA remains in the range of $550-$570 million. Ashland forecasts continued end-market demand recovery, partly offset by the potential economic impact resulting from the war in Ukraine and new government-mandated lockdowns in China related to the pandemic. The production levels across all of the company’s global production sites remain strong as it works to meet customer demand and rebuild global inventories, Ashland noted.
Ashland, on Apr 8, 2022, completed a $200 million open-market share repurchase program, buying back 2.15 million shares. Post this repurchase, the company has $150 million remaining under its share repurchase authorization.
Shares of Ashland have increased 17.8% in the past year compared with a 12.9% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Ashland currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 132.4% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 77.6% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 684.6% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 20% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 37% over a year.
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Ashland (ASH) Updates Q2 Earnings and Affirms FY22 Outlook
Ashland Global Holdings Inc. (ASH - Free Report) recently provided an update for preliminary second-quarter fiscal 2022 financial results and affirmed its outlook for the fiscal year 2022 results.
The company’s performance during the quarter was driven by continued strong end-market demand, disciplined pricing and product mix actions. These factors more than offset additional inflation in raw-material, freight and energy costs and constant supply-chain and labor-availability issues affecting shipments and on-time order delivery.
Per the company, sales for the quarter amounted to nearly $604 million, up around 19% from the prior year quarter’s levels. The company’s segments recorded double-digit sales growth compared to the previous year, aided by strong end-market demand, higher pricing and improved product mix.
Ashland forecasts income from continuing operations for the second fiscal quarter of roughly $38 million, or 66 cents per share. The net income is anticipated to be around $786 million. The company’s adjusted EBITDA is expected to be roughly $163 million, suggesting a rise of around 41% from the prior year’s levels. The upside might be attributed to higher sales and expanded operating margins.
For fiscal 2022, the company’s financial guidance for sales remains the same in the range of $2.25-$2.35 billion. Adjusted EBITDA remains in the range of $550-$570 million. Ashland forecasts continued end-market demand recovery, partly offset by the potential economic impact resulting from the war in Ukraine and new government-mandated lockdowns in China related to the pandemic. The production levels across all of the company’s global production sites remain strong as it works to meet customer demand and rebuild global inventories, Ashland noted.
Ashland, on Apr 8, 2022, completed a $200 million open-market share repurchase program, buying back 2.15 million shares. Post this repurchase, the company has $150 million remaining under its share repurchase authorization.
Shares of Ashland have increased 17.8% in the past year compared with a 12.9% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Ashland currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 132.4% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 77.6% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 684.6% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 20% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 37% over a year.