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Ashland's (ASH) Q1 Earnings Beat Estimates, Revenues Miss
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Ashland Global Holdings Inc. (ASH - Free Report) recorded first-quarter fiscal 2024 (ending Dec 31, 2023) adjusted earnings of 45 cents per share, down from 97 cents in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate of 21 cents.
Sales declined by 9.9% year over year to $473 million, falling short of the Zacks Consensus Estimate of $478.4 million. The decline is attributed to weaker volumes, partly offset by improved pricing within the Life Sciences and Personal Care segments.
Life Sciences: Sales in the segment fell 3% from the prior year to $200 million in the reported quarter, missing the Zacks Consensus Estimate of $203 million. Sustained pricing gains were offset by normalized supply in the pharmaceutical market amidst declining demand, while nutrition end-market volumes continued to face challenges.
Personal Care: Sales in the division fell 7% year over year to $129 million, missing Zacks Consensus Estimate of $131 million. Higher volumes in hair care were more than offset by lower volumes in skin care and oral care, resulting in an overall offset to sustained pricing.
Specialty Additives: Sales in the segment fell 15% year over year to $122 million, missing the Zacks Consensus Estimate of $127 million, attributed to the continued impacts of decreased volumes in fiscal 2023 and lower pricing in architectural coatings.
Intermediates: Sales in the segment dropped 39% year over year to $33 million, below the Zacks Consensus Estimate of $36.1 million, driven by reduced pricing and volumes for both merchant and captive sales.
Financials
Operating activities generated $201 million in cash flows in the first quarter. Ongoing free cash flow was $66 million in the quarter.
Outlook
Ashland forecasts adjusted EBITDA between $115 million and $125 million for the second quarter of fiscal 2024, with anticipated sales ranging from $565 million to $585 million. For the year 2024, sales are expected to be between $2.15 billion and $2.25 billion, while adjusted EBITDA is projected in the range of $460-$500 million.
Price Performance
Shares of Ashland have lost 26.1% in the past year against a 15.8% rise of the industry.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 71.3% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 31.2% in the past year.
ANDE beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 32.8%. The company’s shares have increased 47.7% in the past year.
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Ashland's (ASH) Q1 Earnings Beat Estimates, Revenues Miss
Ashland Global Holdings Inc. (ASH - Free Report) recorded first-quarter fiscal 2024 (ending Dec 31, 2023) adjusted earnings of 45 cents per share, down from 97 cents in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate of 21 cents.
Sales declined by 9.9% year over year to $473 million, falling short of the Zacks Consensus Estimate of $478.4 million. The decline is attributed to weaker volumes, partly offset by improved pricing within the Life Sciences and Personal Care segments.
Ashland Inc. Price, Consensus and EPS Surprise
Ashland Inc. price-consensus-eps-surprise-chart | Ashland Inc. Quote
Segment Highlights
Life Sciences: Sales in the segment fell 3% from the prior year to $200 million in the reported quarter, missing the Zacks Consensus Estimate of $203 million. Sustained pricing gains were offset by normalized supply in the pharmaceutical market amidst declining demand, while nutrition end-market volumes continued to face challenges.
Personal Care: Sales in the division fell 7% year over year to $129 million, missing Zacks Consensus Estimate of $131 million. Higher volumes in hair care were more than offset by lower volumes in skin care and oral care, resulting in an overall offset to sustained pricing.
Specialty Additives: Sales in the segment fell 15% year over year to $122 million, missing the Zacks Consensus Estimate of $127 million, attributed to the continued impacts of decreased volumes in fiscal 2023 and lower pricing in architectural coatings.
Intermediates: Sales in the segment dropped 39% year over year to $33 million, below the Zacks Consensus Estimate of $36.1 million, driven by reduced pricing and volumes for both merchant and captive sales.
Financials
Operating activities generated $201 million in cash flows in the first quarter. Ongoing free cash flow was $66 million in the quarter.
Outlook
Ashland forecasts adjusted EBITDA between $115 million and $125 million for the second quarter of fiscal 2024, with anticipated sales ranging from $565 million to $585 million. For the year 2024, sales are expected to be between $2.15 billion and $2.25 billion, while adjusted EBITDA is projected in the range of $460-$500 million.
Price Performance
Shares of Ashland have lost 26.1% in the past year against a 15.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Ashland currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Cameco Corporation (CCJ - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and The Andersons (ANDE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 71.3% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 31.2% in the past year.
ANDE beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 32.8%. The company’s shares have increased 47.7% in the past year.