We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Innospec (IOSP) Expands Global Presence With QGP Acquisition
Read MoreHide Full Article
Innospec Inc. (IOSP - Free Report) wrapped up the acquisition of QGP Quimica Geral (QGP), a prominent specialty chemicals company located in Brazil. The financial details of the transaction have not been disclosed.
This strategic acquisition marks a significant milestone for Innospec, providing the company with a substantial manufacturing presence, enhanced customer service capabilities and a strengthened product development base in South America. This region is recognized as one of the largest and most crucial global markets for all of Innospec's technologies. QGP's expertise in surfactants and other specialty chemistries also contributes valuable additions to Innospec's global portfolio, particularly in growing markets such as Agriculture.
Founded in 1992, QGP boasts a workforce of 300 employees, all of whom will be seamlessly integrated into Innospec's Performance Chemicals business.
Expressing great satisfaction with the successful completion of the acquisition, Innospec conveyed its pleasure in completing the deal. It emphasized its profound admiration for QGP's founders, recognizing their achievement in building a leading specialty chemical company characterized by outstanding customer service, innovation, and technical support — qualities aligning closely with Innospec's own values. The product development and manufacturing capabilities of QGP were highlighted as complementary across all end markets served by Innospec's Performance Chemicals, spanning Personal Care, Agriculture, Home Care, Industrial Chemicals, Construction and Mining.
Innospec expressed its delight in welcoming QGP's employees and its highly complementary capabilities into the Innospec family. The company anticipates leveraging these strengths to provide a significantly enhanced and broader offering to customers in Brazil and on a global scale.
The acquisition seamlessly aligns with Innospec's longstanding mergers and acquisitions (M&A) strategy, reinforcing the Performance Chemicals segment and establishing a manufacturing foothold in South America. Innospec emphasized that post-acquisition, it maintains a significantly robust, debt-free balance sheet, positioning it favorably for future M&A activities, consistent shareholder returns and strategic investments in organic growth.
Innospec’s shares have gained 3.7% in the past year compared with a 15.1% fall of the industry.
Image Source: Zacks Investment Research
In the third quarter, excluding one-time items, IOSP’s earnings were $1.59 per share that declined from the $1.74 per share recorded a year ago. Despite the downside, the results exceeded the Zacks Consensus Estimate of $1.45 per share. The company's revenues experienced a 10% year-over-year fall, amounting to $464.1 million in the quarter. The figure lagged the Zacks Consensus Estimate of $483 million. The Oilfield Services unit demonstrated robust performance and the Performance Chemicals segment showed sequential improvement in the reported quarter.
Innospec expressed cautious optimism regarding its potential for growth and margin improvement in the fourth quarter in Performance Chemicals, primarily driven by new contracts and ongoing enhancements. The company anticipates sequential margin improvement and operating income growth in Fuel Specialties. For Oilfield Services, IOSP saw similar results in the fourth quarter.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 6.7%. The company’s shares have increased 24.1% in the past year.
The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised upward by 1.8% in the past 60 days. HWKN beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 27.5% on average. The stock has rallied around 58.9% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 34.1% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Innospec (IOSP) Expands Global Presence With QGP Acquisition
Innospec Inc. (IOSP - Free Report) wrapped up the acquisition of QGP Quimica Geral (QGP), a prominent specialty chemicals company located in Brazil. The financial details of the transaction have not been disclosed.
This strategic acquisition marks a significant milestone for Innospec, providing the company with a substantial manufacturing presence, enhanced customer service capabilities and a strengthened product development base in South America. This region is recognized as one of the largest and most crucial global markets for all of Innospec's technologies. QGP's expertise in surfactants and other specialty chemistries also contributes valuable additions to Innospec's global portfolio, particularly in growing markets such as Agriculture.
Founded in 1992, QGP boasts a workforce of 300 employees, all of whom will be seamlessly integrated into Innospec's Performance Chemicals business.
Expressing great satisfaction with the successful completion of the acquisition, Innospec conveyed its pleasure in completing the deal. It emphasized its profound admiration for QGP's founders, recognizing their achievement in building a leading specialty chemical company characterized by outstanding customer service, innovation, and technical support — qualities aligning closely with Innospec's own values. The product development and manufacturing capabilities of QGP were highlighted as complementary across all end markets served by Innospec's Performance Chemicals, spanning Personal Care, Agriculture, Home Care, Industrial Chemicals, Construction and Mining.
Innospec expressed its delight in welcoming QGP's employees and its highly complementary capabilities into the Innospec family. The company anticipates leveraging these strengths to provide a significantly enhanced and broader offering to customers in Brazil and on a global scale.
The acquisition seamlessly aligns with Innospec's longstanding mergers and acquisitions (M&A) strategy, reinforcing the Performance Chemicals segment and establishing a manufacturing foothold in South America. Innospec emphasized that post-acquisition, it maintains a significantly robust, debt-free balance sheet, positioning it favorably for future M&A activities, consistent shareholder returns and strategic investments in organic growth.
Innospec’s shares have gained 3.7% in the past year compared with a 15.1% fall of the industry.
Image Source: Zacks Investment Research
In the third quarter, excluding one-time items, IOSP’s earnings were $1.59 per share that declined from the $1.74 per share recorded a year ago. Despite the downside, the results exceeded the Zacks Consensus Estimate of $1.45 per share. The company's revenues experienced a 10% year-over-year fall, amounting to $464.1 million in the quarter. The figure lagged the Zacks Consensus Estimate of $483 million. The Oilfield Services unit demonstrated robust performance and the Performance Chemicals segment showed sequential improvement in the reported quarter.
Innospec expressed cautious optimism regarding its potential for growth and margin improvement in the fourth quarter in Performance Chemicals, primarily driven by new contracts and ongoing enhancements. The company anticipates sequential margin improvement and operating income growth in Fuel Specialties. For Oilfield Services, IOSP saw similar results in the fourth quarter.
Innospec Inc. Price and Consensus
Innospec Inc. price-consensus-chart | Innospec Inc. Quote
Zacks Rank & Key Picks
Innospec currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. (AXTA - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Hawkins, Inc (HWKN - Free Report) and Alamos Gold Inc. (AGI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 6.7%. The company’s shares have increased 24.1% in the past year.
The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised upward by 1.8% in the past 60 days. HWKN beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 27.5% on average. The stock has rallied around 58.9% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 34.1% in the past year.