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Koppers (KOP) Tops Earnings and Revenue Estimates in Q2
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Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $24.5 million or $1.15 per share for the second quarter of 2023, up from a profit of $11.7 million or 55 cents per share a year ago.
Barring one-time items, adjusted earnings were $1.26 per share for the quarter, up from 97 cents per share a year ago. It topped the Zacks Consensus Estimate of $1.08.
Koppers recorded revenues of $577.2 million for the quarter, up around 15% year over year. The top line surpassed the Zacks Consensus Estimate of $531 million. Revenues were driven by record sales from the Railroad and Utility Products and Services (“RUPS”) and Performance Chemicals (“PC”) segments on higher pricing and volumes. The Carbon Materials and Chemicals (“CMC”) segment also delivered higher sales on price increases.
Koppers Holdings Inc. Price, Consensus and EPS Surprise
Sales from the RUPS segment climbed around 15% year over year to $234.4 million in the reported quarter. It was above the consensus estimate of $221 million. Sales were driven by higher prices in several markets and increased volumes for crossties and utility poles.
The PC segment recorded sales of $180.9 million in the quarter, up around 21% year over year. It beat the consensus estimate of $158 million. Sales were driven by price increases and higher volumes globally.
Sales from the CMC division rose around 9% year over year to $161.9 million. It beat the consensus estimate of $150 million. Sales were driven by increased prices and higher volumes of refined tar in North America.
Financials
Koppers ended the quarter with cash and cash equivalents of $48.2 million, up around 19% year over year. Long-term debt was $902.2 million, up around 8% 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 capital expenditures of roughly $110-$120 million for this year.
Price Performance
Koppers’ shares are up 54.5% over a year compared with 3.7% rise recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Koppers currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , PPG Industries, Inc. (PPG - Free Report) and TimkenSteel Corporation .
The Zacks Consensus Estimate for current fiscal-year earnings for CRS is currently pegged at $3.36, implying year-over-year growth of 194.7%. Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 10%, on average. The stock has rallied around 67% in a year.
PPG Industries currently carries a Zacks Rank #1. The Zacks Consensus Estimate for PPG's current-year earnings has been revised 3.6% upward over the past 60 days.
PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 7.3%, on average. PPG shares have gained around 7% in a year.
TimkenSteel currently carries a Zacks Rank #2 (Buy). The consensus estimate for TMST's current-year earnings has been revised 2.3% upward over the past 60 days.
TimkenSteel’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 18.8%, on average. TMST shares are up around 26% in a year.
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Koppers (KOP) Tops Earnings and Revenue Estimates in Q2
Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $24.5 million or $1.15 per share for the second quarter of 2023, up from a profit of $11.7 million or 55 cents per share a year ago.
Barring one-time items, adjusted earnings were $1.26 per share for the quarter, up from 97 cents per share a year ago. It topped the Zacks Consensus Estimate of $1.08.
Koppers recorded revenues of $577.2 million for the quarter, up around 15% year over year. The top line surpassed the Zacks Consensus Estimate of $531 million. Revenues were driven by record sales from the Railroad and Utility Products and Services (“RUPS”) and Performance Chemicals (“PC”) segments on higher pricing and volumes. The Carbon Materials and Chemicals (“CMC”) segment also delivered higher 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 15% year over year to $234.4 million in the reported quarter. It was above the consensus estimate of $221 million. Sales were driven by higher prices in several markets and increased volumes for crossties and utility poles.
The PC segment recorded sales of $180.9 million in the quarter, up around 21% year over year. It beat the consensus estimate of $158 million. Sales were driven by price increases and higher volumes globally.
Sales from the CMC division rose around 9% year over year to $161.9 million. It beat the consensus estimate of $150 million. Sales were driven by increased prices and higher volumes of refined tar in North America.
Financials
Koppers ended the quarter with cash and cash equivalents of $48.2 million, up around 19% year over year. Long-term debt was $902.2 million, up around 8% 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 capital expenditures of roughly $110-$120 million for this year.
Price Performance
Koppers’ shares are up 54.5% over a year compared with 3.7% rise recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Koppers currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , PPG Industries, Inc. (PPG - Free Report) and TimkenSteel Corporation .
The Zacks Consensus Estimate for current fiscal-year earnings for CRS is currently pegged at $3.36, implying year-over-year growth of 194.7%. Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 10%, on average. The stock has rallied around 67% in a year.
PPG Industries currently carries a Zacks Rank #1. The Zacks Consensus Estimate for PPG's current-year earnings has been revised 3.6% upward over the past 60 days.
PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 7.3%, on average. PPG shares have gained around 7% in a year.
TimkenSteel currently carries a Zacks Rank #2 (Buy). The consensus estimate for TMST's current-year earnings has been revised 2.3% upward over the past 60 days.
TimkenSteel’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 18.8%, on average. TMST shares are up around 26% in a year.