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Koppers (KOP) Q4 Earnings Miss Estimates, Revenues Beat
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Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $12.9 million or 59 cents per share for the fourth quarter of 2023, down from a profit of $13.8 million or 65 cents per share a year ago.
Barring one-time items, adjusted earnings were 67 cents per share for the quarter, down from $1.09 per share a year ago. It missed the Zacks Consensus Estimate of 72 cents.
Koppers recorded revenues of $513.2 million for the quarter, up around 6% year over year. The top line beat the Zacks Consensus Estimate of $496 million. Revenues were driven by record sales from the Railroad and Utility Products and Services (“RUPS”) segment on higher pricing and volumes. The Performance Chemicals (PC) segment also gained from pricing initiatives and higher volumes. The Carbon Materials and Chemicals (“CMC”) segment saw lower sales on reduced prices and soft demand.
Koppers Holdings Inc. Price, Consensus and EPS Surprise
Sales from the RUPS segment climbed around 12% year over year to $216.4 million in the reported quarter. It was above the consensus estimate of $214 million. Sales were driven by higher prices in several markets and increased volumes for crossties.
The PC segment recorded sales of $164.4 million in the quarter, up around 17% year over year. It beat the consensus estimate of $150 million. Sales were driven by price increases and higher volumes globally.
Sales from the CMC division fell around 11% year over year to $132.4 million. It was above the consensus estimate of $130 million. The year-over-year downside was due to weaker market demand and lower sales prices across most products.
FY23 Results
Net income for 2023 was $89.2 million or $4.14 per share, compared with net income of $63.4 million or $2.98 per share a year ago. Net sales rose around 9% year over year to $2,154.2 million.
Financials
Koppers ended 2023 with cash and cash equivalents of $66.5 million, up around 100% on a year-over-year basis. Long-term debt was $835.4 million, up around 2% 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 anticipates sales for 2024 to be roughly $2.25 billion. It also expects adjusted EBITDA to be roughly $275 million for the year. Koppers sees adjusted earnings per share to be $4.60-$4.80 for 2024.
The company also expects capital expenditures of roughly $100 million for this year.
Price Performance
Koppers’ shares have risen 49.7% in a year compared with 15.9% decline recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
KOP 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 around 29% 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 108% 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 64% in the past year.
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Koppers (KOP) Q4 Earnings Miss Estimates, Revenues Beat
Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $12.9 million or 59 cents per share for the fourth quarter of 2023, down from a profit of $13.8 million or 65 cents per share a year ago.
Barring one-time items, adjusted earnings were 67 cents per share for the quarter, down from $1.09 per share a year ago. It missed the Zacks Consensus Estimate of 72 cents.
Koppers recorded revenues of $513.2 million for the quarter, up around 6% year over year. The top line beat the Zacks Consensus Estimate of $496 million. Revenues were driven by record sales from the Railroad and Utility Products and Services (“RUPS”) segment on higher pricing and volumes. The Performance Chemicals (PC) segment also gained from pricing initiatives and higher volumes. The Carbon Materials and Chemicals (“CMC”) segment saw lower sales on reduced prices and soft demand.
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 12% year over year to $216.4 million in the reported quarter. It was above the consensus estimate of $214 million. Sales were driven by higher prices in several markets and increased volumes for crossties.
The PC segment recorded sales of $164.4 million in the quarter, up around 17% year over year. It beat the consensus estimate of $150 million. Sales were driven by price increases and higher volumes globally.
Sales from the CMC division fell around 11% year over year to $132.4 million. It was above the consensus estimate of $130 million. The year-over-year downside was due to weaker market demand and lower sales prices across most products.
FY23 Results
Net income for 2023 was $89.2 million or $4.14 per share, compared with net income of $63.4 million or $2.98 per share a year ago. Net sales rose around 9% year over year to $2,154.2 million.
Financials
Koppers ended 2023 with cash and cash equivalents of $66.5 million, up around 100% on a year-over-year basis. Long-term debt was $835.4 million, up around 2% 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 anticipates sales for 2024 to be roughly $2.25 billion. It also expects adjusted EBITDA to be roughly $275 million for the year. Koppers sees adjusted earnings per share to be $4.60-$4.80 for 2024.
The company also expects capital expenditures of roughly $100 million for this year.
Price Performance
Koppers’ shares have risen 49.7% in a year compared with 15.9% decline recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
KOP 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 around 29% 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 108% 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 64% in the past year.