Ingevity Corporation ( NGVT Quick Quote 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.
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.
Shares of Ingevity have declined 24.4% in a year against a 15.9% decline of the
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Ingevity currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include
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