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Innospec's (IOSP) Earnings and Sales Surpass Estimates in Q4
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Innospec Inc. (IOSP - Free Report) recorded a profit of $37.8 million or $1.51 per share in fourth-quarter 2023, up from a profit of $25.5 million or $1.02 in the year-ago quarter.
Barring one-time items, earnings came in at $1.84 per share, up from $1.20 per share a year ago. It surpassed the Zacks Consensus Estimate of $1.59.
The company’s revenues fell roughly 3% year over year to $494.7 million in the quarter. It beat the Zacks Consensus Estimate of $474 million. The company saw continued strong results in its Oilfield Services unit. Performance Chemicals and Fuel Specialties segments also recorded double-digit operating income growth and margin expansion over the prior-year quarter.
The Performance Chemicals unit logged sales of $137.2 million in the reported quarter, down around 5% year over year, hurt by unfavorable price/mix, partly offset by higher volumes and favorable currency swings. It was below the consensus estimate of $147 million.
Revenues in the Fuel Specialties segment fell 1% year over year to $182.1 million in the reported quarter as an unfavorable price/mix was offset by the positive currency impact. Volumes were flat in the quarter. The figure was higher than the consensus estimate of $178 million.
Revenues in the Oilfield Services division fell 4% year over year to $175.4 million. It was higher than the consensus estimate of $149 million.
FY23 Results
Earnings for full-year 2023 were $5.56 per share compared with $5.32 per share a year ago. Net sales declined around 0.8% year over year to $1,948.8 million.
Financials
Innospec ended 2023 with cash and cash equivalents of $203.7 million, up around 38% year over year.
Cash from operating activities was $207.3 million for full-year 2023 and $72.4 million for the fourth quarter.
Outlook
Innospec said that it entered 2024 with optimism notwithstanding expectations for continued economic headwinds in the coming quarters. Its growing pipeline of technology-based organic opportunities will continue to advance along with the integration of the QGP acquisition, IOSP noted.
Price Performance
Shares of Innospec have gained 2.6% over a year, compared with the industry’s 19.7% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
IOSP currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include, Carpenter Technology Corporation (CRS - Free Report) , Alpha Metallurgical Resources Inc. (AMR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained 20% in the past year. CRS currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alpha Metallurgical Resources’ current-year earnings has been revised upward by 8.8% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 125% in a year.
The consensus estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied 55% in the past year.
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Innospec's (IOSP) Earnings and Sales Surpass Estimates in Q4
Innospec Inc. (IOSP - Free Report) recorded a profit of $37.8 million or $1.51 per share in fourth-quarter 2023, up from a profit of $25.5 million or $1.02 in the year-ago quarter.
Barring one-time items, earnings came in at $1.84 per share, up from $1.20 per share a year ago. It surpassed the Zacks Consensus Estimate of $1.59.
The company’s revenues fell roughly 3% year over year to $494.7 million in the quarter. It beat the Zacks Consensus Estimate of $474 million. The company saw continued strong results in its Oilfield Services unit. Performance Chemicals and Fuel Specialties segments also recorded double-digit operating income growth and margin expansion over the prior-year quarter.
Innospec Inc. Price, Consensus and EPS Surprise
Innospec Inc. price-consensus-eps-surprise-chart | Innospec Inc. Quote
Segment Highlights
The Performance Chemicals unit logged sales of $137.2 million in the reported quarter, down around 5% year over year, hurt by unfavorable price/mix, partly offset by higher volumes and favorable currency swings. It was below the consensus estimate of $147 million.
Revenues in the Fuel Specialties segment fell 1% year over year to $182.1 million in the reported quarter as an unfavorable price/mix was offset by the positive currency impact. Volumes were flat in the quarter. The figure was higher than the consensus estimate of $178 million.
Revenues in the Oilfield Services division fell 4% year over year to $175.4 million. It was higher than the consensus estimate of $149 million.
FY23 Results
Earnings for full-year 2023 were $5.56 per share compared with $5.32 per share a year ago. Net sales declined around 0.8% year over year to $1,948.8 million.
Financials
Innospec ended 2023 with cash and cash equivalents of $203.7 million, up around 38% year over year.
Cash from operating activities was $207.3 million for full-year 2023 and $72.4 million for the fourth quarter.
Outlook
Innospec said that it entered 2024 with optimism notwithstanding expectations for continued economic headwinds in the coming quarters. Its growing pipeline of technology-based organic opportunities will continue to advance along with the integration of the QGP acquisition, IOSP noted.
Price Performance
Shares of Innospec have gained 2.6% over a year, compared with the industry’s 19.7% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
IOSP currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include, Carpenter Technology Corporation (CRS - Free Report) , Alpha Metallurgical Resources Inc. (AMR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained 20% in the past year. CRS currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alpha Metallurgical Resources’ current-year earnings has been revised upward by 8.8% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 125% in a year.
The consensus estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied 55% in the past year.