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Koppers (KOP) Earnings Top Estimates in Q4, Revenues Lag
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Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $13.8 million or 65 cents per share for the fourth quarter of 2022, down from a profit of $22.2 million or $1.01 per share a year ago.
Barring one-time items, adjusted earnings were $1.09 per share for the quarter, up from 77 cents per share a year ago. It topped the Zacks Consensus Estimate of 90 cents.
Koppers recorded revenues of $482.6 million for the quarter, up around 19% year over year. Revenues missed the Zacks Consensus Estimate of $503.3 million. The top line was driven by record sales from the Railroad and Utility Products and Services (“RUPS”) and Performance Chemicals (“PC”) segments on higher pricing. The Carbon Materials and Chemicals (“CMC”) segment also delivered strong sales on price increases.
Koppers Holdings Inc. Price, Consensus and EPS Surprise
Sales from the RUPS segment climbed around 24% year over year to $193 million in the reported quarter. Sales were driven by higher prices, increased volumes in commercial crossties and higher activity in maintenance-of-way businesses.
The PC segment recorded sales of $140.8 million in the quarter, up around 18% year over year. Sales were driven by price hikes globally and higher volumes in the Americas.
Sales from the CMC division rose around 14% year over year to $148.8 million. Sales were driven by increased prices on the back of strong demand and limited supply.
FY22 Results
Earnings for full-year 2022 were $2.98 per share compared with $3.88 per share a year ago. Net sales rose around 18% year over year to $1,980.5 million.
Financials
Koppers ended 2022 with cash and cash equivalents of $33.3 million, down around 27% year over year. Long-term debt was $817.7 million, up around 5% 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 2023 to be roughly $2.1 billion. It also expects adjusted EBITDA to be around $250 million for the year. Koppers sees adjusted earnings per share for 2023 to be around $4.40.
The company also expects investments of roughly $105 million in capital expenditures this year.
Price Performance
Koppers’ shares are up 31.7% over a year compared with 12.1% rise recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Koppers 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 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 30% 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 24% in the past year.
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Koppers (KOP) Earnings Top Estimates in Q4, Revenues Lag
Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $13.8 million or 65 cents per share for the fourth quarter of 2022, down from a profit of $22.2 million or $1.01 per share a year ago.
Barring one-time items, adjusted earnings were $1.09 per share for the quarter, up from 77 cents per share a year ago. It topped the Zacks Consensus Estimate of 90 cents.
Koppers recorded revenues of $482.6 million for the quarter, up around 19% year over year. Revenues missed the Zacks Consensus Estimate of $503.3 million. The top line was driven by record sales from the Railroad and Utility Products and Services (“RUPS”) and Performance Chemicals (“PC”) segments on higher pricing. The Carbon Materials and Chemicals (“CMC”) segment also delivered strong sales on price increases.
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 climbed around 24% year over year to $193 million in the reported quarter. Sales were driven by higher prices, increased volumes in commercial crossties and higher activity in maintenance-of-way businesses.
The PC segment recorded sales of $140.8 million in the quarter, up around 18% year over year. Sales were driven by price hikes globally and higher volumes in the Americas.
Sales from the CMC division rose around 14% year over year to $148.8 million. Sales were driven by increased prices on the back of strong demand and limited supply.
FY22 Results
Earnings for full-year 2022 were $2.98 per share compared with $3.88 per share a year ago. Net sales rose around 18% year over year to $1,980.5 million.
Financials
Koppers ended 2022 with cash and cash equivalents of $33.3 million, down around 27% year over year. Long-term debt was $817.7 million, up around 5% 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 2023 to be roughly $2.1 billion. It also expects adjusted EBITDA to be around $250 million for the year. Koppers sees adjusted earnings per share for 2023 to be around $4.40.
The company also expects investments of roughly $105 million in capital expenditures this year.
Price Performance
Koppers’ shares are up 31.7% over a year compared with 12.1% rise recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Koppers 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 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 30% 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 24% in the past year.