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Quaker Chemical's (KWR) Earnings and Sales Top Estimates in Q4
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Quaker Chemical Corporation (KWR - Free Report) recorded a loss of $76 million or $4.24 per share in the fourth quarter of 2022 against a profit of $18.1 million or $1.01 a year ago.
Barring one-time items, earnings came in at $1.39 per share for the reported quarter, surpassing the Zacks Consensus Estimate of $1.22.
Net sales rose around 8% year over year to $484.8 million in the quarter. It beat the Zacks Consensus Estimate of $455 million. Higher selling price and product mix as well as additional net sales from acquisitions were partly offset by lower organic sales volumes and the unfavorable impact from foreign currency swings.
The increase in selling price and product mix was mainly attributable to double-digit increases in selling prices across the segments to offset inflationary cost pressures.
Segment Highlights
Sales from the Americas segment rose 24% year over year to $182.7 million in the reported quarter. The same for the EMEA unit was down around 2% year over year $112.5 million. The Asia/Pacific unit logged sales of $91.2 million, down around 10% year over year. Sales from the Global Specialty Businesses division went up around 17% year over year to $98.5 million.
All four segments gained from double-digit increases in selling price and product mix in the reported quarter.
FY22 Results
Earnings, as adjusted, for full-year 2022 were $5.87 per share compared with $6.85 per share a year ago. Net sales rose around 10% year over year to $1,943.6 million.
Financials
The company ended 2022 with cash and cash equivalents of around $181 million, up roughly 10% year over year. Long-term debt was $933.6 million, up around 12% year over year.
Net operating cash outflow was $41.8 million for 2022, down from $48.9 million a year ago.
Outlook
Moving ahead, Quaker Chemical said that it expects to continue the momentum in 2023. It expects to make further progress in margin recovery in 2023 through pricing and cost actions. KWR also remains committed to advance its strategic actions geared to improve the profitability, productivity and sustainability of the company and its customers.
Price Performance
Quaker Chemical’s shares are up 6.8% in the past year compared with the industry’s 11% decline.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Quaker Chemical currently 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 Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 22.3% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 68% in a year.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 33% in a year.
Nucor currently carries a Zacks Rank #1. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 12.5% upward in the past 60 days.
Nucor beat Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average. NUE’s shares have gained roughly 21% in the past year.
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Quaker Chemical's (KWR) Earnings and Sales Top Estimates in Q4
Quaker Chemical Corporation (KWR - Free Report) recorded a loss of $76 million or $4.24 per share in the fourth quarter of 2022 against a profit of $18.1 million or $1.01 a year ago.
Barring one-time items, earnings came in at $1.39 per share for the reported quarter, surpassing the Zacks Consensus Estimate of $1.22.
Net sales rose around 8% year over year to $484.8 million in the quarter. It beat the Zacks Consensus Estimate of $455 million. Higher selling price and product mix as well as additional net sales from acquisitions were partly offset by lower organic sales volumes and the unfavorable impact from foreign currency swings.
The increase in selling price and product mix was mainly attributable to double-digit increases in selling prices across the segments to offset inflationary cost pressures.
Segment Highlights
Sales from the Americas segment rose 24% year over year to $182.7 million in the reported quarter. The same for the EMEA unit was down around 2% year over year $112.5 million. The Asia/Pacific unit logged sales of $91.2 million, down around 10% year over year. Sales from the Global Specialty Businesses division went up around 17% year over year to $98.5 million.
All four segments gained from double-digit increases in selling price and product mix in the reported quarter.
FY22 Results
Earnings, as adjusted, for full-year 2022 were $5.87 per share compared with $6.85 per share a year ago. Net sales rose around 10% year over year to $1,943.6 million.
Financials
The company ended 2022 with cash and cash equivalents of around $181 million, up roughly 10% year over year. Long-term debt was $933.6 million, up around 12% year over year.
Net operating cash outflow was $41.8 million for 2022, down from $48.9 million a year ago.
Outlook
Moving ahead, Quaker Chemical said that it expects to continue the momentum in 2023. It expects to make further progress in margin recovery in 2023 through pricing and cost actions. KWR also remains committed to advance its strategic actions geared to improve the profitability, productivity and sustainability of the company and its customers.
Price Performance
Quaker Chemical’s shares are up 6.8% in the past year compared with the industry’s 11% decline.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Quaker Chemical currently 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 Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 22.3% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 68% in a year.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 33% in a year.
Nucor currently carries a Zacks Rank #1. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 12.5% upward in the past 60 days.
Nucor beat Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average. NUE’s shares have gained roughly 21% in the past year.