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Ashland (ASH) Issues Fiscal Q3 Update, Raises FY22 Outlook
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Ashland Global Holdings Inc. (ASH - Free Report) provided an update on preliminary third-quarter fiscal 2022 financial results and raised its outlook for fiscal 2022.
The results in the fiscal third quarter were driven by continued strong demand from resilient end-markets, reduced overall exposure to petrochemical-linked raw materials, disciplined pricing and product mix actions more than offsetting additional raw material, freight and energy cost inflation. The results were also aided by consistent operating performance across the company’s global network of production facilities and research and development labs and strong financial results notwithstanding significant foreign currency headwinds resulting from the strengthening U.S. dollar. Sales for the quarter were around $644 million, up roughly 19% year over year.
Ashland projects income from continuing operations for the fiscal third quarter of roughly $51 million, or 93 cents per share. Adjusted earnings from continuing operations excluding intangibles amortization are expected to be roughly $104 million, or $1.89 per share.Net income is expected to be roughly $36 million.
Ashland now expects sales in the range of $2.35-$2.40 billion for fiscal 2022, indicating an increase of around 3% from the earlier outlook. This raised guidance assumes a headwind of roughly $30 million from negative foreign currency in the fiscal fourth quarter.
It now expects adjusted EBITDA to be in the range of $580-$590 million for fiscal 2022, suggesting an increase of around 4% from the earlier guidance. This raised outlook assumes a headwind of roughly $10 million from negative foreign currency in the fiscal fourth quarter.
Shares of Ashland have increased 17.5% in the past year against a 22.3% 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 Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Allegheny Technologies Inc. (ATI - Free Report) .
Albemarle has a projected earnings growth rate of 232.2% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 18% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 12.7% 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.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 24.3% over a year.
Allegheny has a projected earnings growth rate of 1,046.2% for the current year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 15.5% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 128.9%. ATI has gained 19.7% in a year. The company carries a Zacks Rank #2.
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Ashland (ASH) Issues Fiscal Q3 Update, Raises FY22 Outlook
Ashland Global Holdings Inc. (ASH - Free Report) provided an update on preliminary third-quarter fiscal 2022 financial results and raised its outlook for fiscal 2022.
The results in the fiscal third quarter were driven by continued strong demand from resilient end-markets, reduced overall exposure to petrochemical-linked raw materials, disciplined pricing and product mix actions more than offsetting additional raw material, freight and energy cost inflation. The results were also aided by consistent operating performance across the company’s global network of production facilities and research and development labs and strong financial results notwithstanding significant foreign currency headwinds resulting from the strengthening U.S. dollar. Sales for the quarter were around $644 million, up roughly 19% year over year.
Ashland projects income from continuing operations for the fiscal third quarter of roughly $51 million, or 93 cents per share. Adjusted earnings from continuing operations excluding intangibles amortization are expected to be roughly $104 million, or $1.89 per share.Net income is expected to be roughly $36 million.
Ashland now expects sales in the range of $2.35-$2.40 billion for fiscal 2022, indicating an increase of around 3% from the earlier outlook. This raised guidance assumes a headwind of roughly $30 million from negative foreign currency in the fiscal fourth quarter.
It now expects adjusted EBITDA to be in the range of $580-$590 million for fiscal 2022, suggesting an increase of around 4% from the earlier guidance. This raised outlook assumes a headwind of roughly $10 million from negative foreign currency in the fiscal fourth quarter.
Shares of Ashland have increased 17.5% in the past year against a 22.3% 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 Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Allegheny Technologies Inc. (ATI - Free Report) .
Albemarle has a projected earnings growth rate of 232.2% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 18% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 12.7% 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.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 24.3% over a year.
Allegheny has a projected earnings growth rate of 1,046.2% for the current year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 15.5% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 128.9%. ATI has gained 19.7% in a year. The company carries a Zacks Rank #2.