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Koppers' (KOP) Earnings and Revenues Top Estimates in Q1
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Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $18.8 million or 87 cents per share for the first quarter of 2022, down from a profit of $25.9 million or $1.18 per share a year ago.
Barring one-time items, adjusted earnings were 91 cents per share for the quarter, down from $1.02 per share a year ago. It topped the Zacks Consensus Estimate of 84 cents.
Koppers recorded revenues of $459.3 million for the quarter, up around 13% year over year. Revenues surpassed the Zacks Consensus Estimate of $424 million. Lower sales from the Railroad and Utility Products and Services (“RUPS”) unit were more than offset by strong sales in Performance Chemicals (“PC”) and Carbon Materials and Chemicals (“CMC”) segments.
Koppers Holdings Inc. Price, Consensus and EPS Surprise
Sales from the RUPS segment fell around 4% year over year to $183.4 million in the reported quarter. Sales were impacted by a decline in volumes of utility poles in the United States and Australia, as well as reduced volumes of crossties for both Class I and commercial railroads.
The PC segment recorded sales of $136.4 million in the quarter, up around 10% year over year. Sales were driven by price hikes globally and increased demand for preservatives in South America.
Sales from the CMC division climbed around 52% year over year to $139.5 million. Sales were driven by increased prices and volumes for carbon pitch, phthalic anhydride and carbon black feedstock, as well as higher prices for naphthalene.
Financials
Koppers ended the quarter with cash and cash equivalents of $49.2 million, up around 11% year over year. Long-term debt was $829.4 million, up around 4% year over year.
Outlook
Koppers noted that it remains focused on expanding and optimizing its business and making progress toward its long-term financial goals.
The company anticipated sales for 2022 to be roughly $1.9 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 $4.10.
The company also expects investments of roughly $95 million in capital expenditures this year.
Price Performance
Koppers’ shares are down 33.7% over a year compared with 7.1% decline recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Koppers carries a Zacks Rank #4 (Sell).
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 21% 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 18% 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 46% in a year.
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Koppers' (KOP) Earnings and Revenues Top Estimates in Q1
Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $18.8 million or 87 cents per share for the first quarter of 2022, down from a profit of $25.9 million or $1.18 per share a year ago.
Barring one-time items, adjusted earnings were 91 cents per share for the quarter, down from $1.02 per share a year ago. It topped the Zacks Consensus Estimate of 84 cents.
Koppers recorded revenues of $459.3 million for the quarter, up around 13% year over year. Revenues surpassed the Zacks Consensus Estimate of $424 million. Lower sales from the Railroad and Utility Products and Services (“RUPS”) unit were more than offset by strong sales in Performance Chemicals (“PC”) and Carbon Materials and Chemicals (“CMC”) segments.
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 4% year over year to $183.4 million in the reported quarter. Sales were impacted by a decline in volumes of utility poles in the United States and Australia, as well as reduced volumes of crossties for both Class I and commercial railroads.
The PC segment recorded sales of $136.4 million in the quarter, up around 10% year over year. Sales were driven by price hikes globally and increased demand for preservatives in South America.
Sales from the CMC division climbed around 52% year over year to $139.5 million. Sales were driven by increased prices and volumes for carbon pitch, phthalic anhydride and carbon black feedstock, as well as higher prices for naphthalene.
Financials
Koppers ended the quarter with cash and cash equivalents of $49.2 million, up around 11% year over year. Long-term debt was $829.4 million, up around 4% year over year.
Outlook
Koppers noted that it remains focused on expanding and optimizing its business and making progress toward its long-term financial goals.
The company anticipated sales for 2022 to be roughly $1.9 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 $4.10.
The company also expects investments of roughly $95 million in capital expenditures this year.
Price Performance
Koppers’ shares are down 33.7% over a year compared with 7.1% decline recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Koppers carries a Zacks Rank #4 (Sell).
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 21% 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 18% 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 46% in a year.