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Ingevity's (NGVT) Earnings and Sales Surpass Estimates in Q4
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Ingevity Corporation (NGVT - Free Report) recorded a fourth-quarter 2023 loss of $116.8 million or $3.23 per share. This compares with a profit of $15.6 million or 41 cents per share in the year-ago quarter.
Excluding one-time items, adjusted earnings in the quarter were 21 cents per share, down from 57 cents a year ago. The figure topped the Zacks Consensus Estimate of a loss of 13 cents.
Revenues fell around 3% year over year to $371.7 million in the quarter. It beat the Zacks Consensus Estimate of $331.8 million. Increased volumes in the Performance Materials segment and the Road Technologies business line were more than offset by reduced volumes in the Advanced Polymer Technologies segment and the Industrial Specialties business line.
Ingevity Corporation Price, Consensus and EPS Surprise
The Performance Chemicals division generated revenues of $176.5 million in the reported quarter, down around 8% year over year. The reported figure was higher than the consensus estimate of $165 million. Higher sales in Road Technologies were more than offset by a decline in Industrial Specialties.
Revenues in the Performance Materials unit rose around 15% year over year to $152.8 million on higher volumes in China and increased pricing in automotive end markets. The figure was higher than the consensus estimate of $126 million.
Sales in the Advanced Polymer Technologies segment were down 29% to $42.4 million on weaker volumes in many of the end markets. It was above the consensus estimate of $41 million.
FY23 Results
Loss for full-year 2023 was 15 cents per share. This compares with earnings of $5.50 per share a year ago. Net sales rose around 1% year over year to $1,692.1 million.
Financials
NGVT ended 2023 with cash and cash equivalents of $95.9 million, up around 25% year over year. Long-term debt was $1,382.8 million, down around 6% year over year.
Operating cash flow for full-year 2023 was $205.1 million while free cash flow was $95.3 million.
Outlook
The company expects sales between $1.40 billion and $1.55 billion for 2024. Adjusted EBITDA is forecast to be between $365 million and $390 million for the year. NGVT noted that its Performance Materials segment and the Road Technologies business line are positioned for strong growth in 2024.
Price Performance
Shares of Ingevity are down 48.4% in a year against a 23.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
NGVT currently has a Zacks Rank #4 (Sell).
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 around 34% 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 129% 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 roughly 68% in the past year.
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Ingevity's (NGVT) Earnings and Sales Surpass Estimates in Q4
Ingevity Corporation (NGVT - Free Report) recorded a fourth-quarter 2023 loss of $116.8 million or $3.23 per share. This compares with a profit of $15.6 million or 41 cents per share in the year-ago quarter.
Excluding one-time items, adjusted earnings in the quarter were 21 cents per share, down from 57 cents a year ago. The figure topped the Zacks Consensus Estimate of a loss of 13 cents.
Revenues fell around 3% year over year to $371.7 million in the quarter. It beat the Zacks Consensus Estimate of $331.8 million. Increased volumes in the Performance Materials segment and the Road Technologies business line were more than offset by reduced volumes in the Advanced Polymer Technologies segment and the Industrial Specialties business line.
Ingevity Corporation Price, Consensus and EPS Surprise
Ingevity Corporation price-consensus-eps-surprise-chart | Ingevity Corporation Quote
Segmental Review
The Performance Chemicals division generated revenues of $176.5 million in the reported quarter, down around 8% year over year. The reported figure was higher than the consensus estimate of $165 million. Higher sales in Road Technologies were more than offset by a decline in Industrial Specialties.
Revenues in the Performance Materials unit rose around 15% year over year to $152.8 million on higher volumes in China and increased pricing in automotive end markets. The figure was higher than the consensus estimate of $126 million.
Sales in the Advanced Polymer Technologies segment were down 29% to $42.4 million on weaker volumes in many of the end markets. It was above the consensus estimate of $41 million.
FY23 Results
Loss for full-year 2023 was 15 cents per share. This compares with earnings of $5.50 per share a year ago. Net sales rose around 1% year over year to $1,692.1 million.
Financials
NGVT ended 2023 with cash and cash equivalents of $95.9 million, up around 25% year over year. Long-term debt was $1,382.8 million, down around 6% year over year.
Operating cash flow for full-year 2023 was $205.1 million while free cash flow was $95.3 million.
Outlook
The company expects sales between $1.40 billion and $1.55 billion for 2024. Adjusted EBITDA is forecast to be between $365 million and $390 million for the year. NGVT noted that its Performance Materials segment and the Road Technologies business line are positioned for strong growth in 2024.
Price Performance
Shares of Ingevity are down 48.4% in a year against a 23.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
NGVT currently has a Zacks Rank #4 (Sell).
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 around 34% 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 129% 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 roughly 68% in the past year.