We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ingevity's (NGVT) Earnings and Sales Surpass Estimates in Q1
Read MoreHide Full Article
Ingevity Corporation (NGVT - Free Report) recorded profits of $60.8 million or $1.55 per share in first-quarter 2022, up from a profit of $48.7 million or $1.20 in the year-ago quarter.
Excluding one-time items, adjusted earnings in the quarter were $1.62 per share, up from $1.27 a year ago. The figure topped the Zacks Consensus Estimate of $1.11.
The company’s revenues rose around 20% year over year to a record $382.8 million in the quarter, beating the Zacks Consensus Estimate of $344 million. In the first quarter, the company benefited from actions to increase prices on strong end-market demand, which helped it offset inflationary cost pressures.
Adjusted EBITDA went up roughly 13% year over year to $119 million in the quarter.
Ingevity Corporation Price, Consensus and EPS Surprise
The Performance Chemicals division generated revenues of $234.4 million in the reported quarter, rising around 31% year over year, mainly on strong volume growth and price increases driven by strong demand. Sales rose around 34% in Engineered Polymers while sales in Industrial Specialties applications went up roughly 29% as price hikes offset higher costs.
Revenues in the Performance Materials unit increased around 6% year over year to $148.4 million, aided by regional mix shifts in automotive products sales as well as higher volume and price increases in process purification products.
Financials
Ingevity ended the quarter with cash and cash equivalents of $222.6 million, down around 6% year over year. Long-term debt was $945.6 million, down roughly 25% year over year.
Operating cash flow was $24.3 million for the reported quarter, down around 52% year over year.
Outlook
The company raised the top ends of its guidance ranges for 2022. It now expects sales in the band of $1.525-$1.65 billion, compared with $1.525-$1.6 billion it expected earlier. Adjusted EBITDA is now forecast between $430 million and $470 million, compared with the prior view of $430 million and $460 million.
Price Performance
Shares of Ingevity have declined 24.4% in a year against a 15.9% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Ingevity currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Steel Dynamics, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has gained around 29% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 23% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 48% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ingevity's (NGVT) Earnings and Sales Surpass Estimates in Q1
Ingevity Corporation (NGVT - Free Report) recorded profits of $60.8 million or $1.55 per share in first-quarter 2022, up from a profit of $48.7 million or $1.20 in the year-ago quarter.
Excluding one-time items, adjusted earnings in the quarter were $1.62 per share, up from $1.27 a year ago. The figure topped the Zacks Consensus Estimate of $1.11.
The company’s revenues rose around 20% year over year to a record $382.8 million in the quarter, beating the Zacks Consensus Estimate of $344 million. In the first quarter, the company benefited from actions to increase prices on strong end-market demand, which helped it offset inflationary cost pressures.
Adjusted EBITDA went up roughly 13% year over year to $119 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 $234.4 million in the reported quarter, rising around 31% year over year, mainly on strong volume growth and price increases driven by strong demand. Sales rose around 34% in Engineered Polymers while sales in Industrial Specialties applications went up roughly 29% as price hikes offset higher costs.
Revenues in the Performance Materials unit increased around 6% year over year to $148.4 million, aided by regional mix shifts in automotive products sales as well as higher volume and price increases in process purification products.
Financials
Ingevity ended the quarter with cash and cash equivalents of $222.6 million, down around 6% year over year. Long-term debt was $945.6 million, down roughly 25% year over year.
Operating cash flow was $24.3 million for the reported quarter, down around 52% year over year.
Outlook
The company raised the top ends of its guidance ranges for 2022. It now expects sales in the band of $1.525-$1.65 billion, compared with $1.525-$1.6 billion it expected earlier. Adjusted EBITDA is now forecast between $430 million and $470 million, compared with the prior view of $430 million and $460 million.
Price Performance
Shares of Ingevity have declined 24.4% in a year against a 15.9% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Ingevity currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Steel Dynamics, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has gained around 29% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 16%, on average. CMC has gained around 23% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 48% in a year.