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Quaker Chemical's (KWR) Earnings and Sales Beat Estimates in Q4
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Quaker Chemical Corporation (KWR - Free Report) recorded earnings of $1.12 per share in the fourth quarter of 2023. This compares with a loss of $4.24 per share in the year-ago quarter.
Barring one-time items, earnings came in at $1.78 per share for the reported quarter, topping the Zacks Consensus Estimate of $1.64.
Net sales fell around 4% year over year to $467.1 million in the quarter. It beat the Zacks Consensus Estimate of $467 million. Lower selling price and product mix as well as reduced volumes more than offset favorable currency swings.
The decreased in selling price and product mix was mainly due to index-based contracts as well as product mix, which more than offset targeted price actions.
Segment Highlights
Sales from the Americas segment fell around 7% year over year to $226.6 million in the reported quarter. It was above the consensus estimate of $217 million. Lower sales volumes as well as decreased selling price and product mix more than offset a favorable foreign currency translation.
The EMEA unit recorded sales of $135.7 million in the quarter, flat year over year. It was above the consensus estimate of $130 million. Higher sales volumes and favorable currency swings were offset by a decline in selling price and product mix.
The Asia/Pacific unit logged sales of $104.8 million, flat year over year. It was below the consensus estimate of $106 million. Higher sales volumes offset a decline in selling price and product mix as well as an unfavorable foreign currency translation.
FY23 Results
Earnings for 2023 were $6.26 per share. This compares with a loss of 89 cents per share a year ago. Net sales rose around 0.5% year over year to $1,953.3 million.
Financials
The company ended 2023 with cash and cash equivalents of around $194.5 million, up roughly 7% year over year. Long-term debt was around $730.6 million, down around 22% year over year.
Net operating cash flow was $279 million for 2023, up from $41.8 million a year ago.
Outlook
Moving ahead, Quaker Chemical expects current market conditions to continue through the first half of 2024. KWR remains committed to executing its enterprise strategy, earning new business with valued customers and positioning the company to deliver long-term profitable growth. It expects to gain from these actions this year and deliver another year of earnings growth.
Price Performance
Quaker Chemical’s shares are up 1.2% in the past year compared with the industry’s 21.4% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
KWR 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 matched it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 27% 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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Quaker Chemical's (KWR) Earnings and Sales Beat Estimates in Q4
Quaker Chemical Corporation (KWR - Free Report) recorded earnings of $1.12 per share in the fourth quarter of 2023. This compares with a loss of $4.24 per share in the year-ago quarter.
Barring one-time items, earnings came in at $1.78 per share for the reported quarter, topping the Zacks Consensus Estimate of $1.64.
Net sales fell around 4% year over year to $467.1 million in the quarter. It beat the Zacks Consensus Estimate of $467 million. Lower selling price and product mix as well as reduced volumes more than offset favorable currency swings.
The decreased in selling price and product mix was mainly due to index-based contracts as well as product mix, which more than offset targeted price actions.
Segment Highlights
Sales from the Americas segment fell around 7% year over year to $226.6 million in the reported quarter. It was above the consensus estimate of $217 million. Lower sales volumes as well as decreased selling price and product mix more than offset a favorable foreign currency translation.
The EMEA unit recorded sales of $135.7 million in the quarter, flat year over year. It was above the consensus estimate of $130 million. Higher sales volumes and favorable currency swings were offset by a decline in selling price and product mix.
The Asia/Pacific unit logged sales of $104.8 million, flat year over year. It was below the consensus estimate of $106 million. Higher sales volumes offset a decline in selling price and product mix as well as an unfavorable foreign currency translation.
FY23 Results
Earnings for 2023 were $6.26 per share. This compares with a loss of 89 cents per share a year ago. Net sales rose around 0.5% year over year to $1,953.3 million.
Financials
The company ended 2023 with cash and cash equivalents of around $194.5 million, up roughly 7% year over year. Long-term debt was around $730.6 million, down around 22% year over year.
Net operating cash flow was $279 million for 2023, up from $41.8 million a year ago.
Outlook
Moving ahead, Quaker Chemical expects current market conditions to continue through the first half of 2024. KWR remains committed to executing its enterprise strategy, earning new business with valued customers and positioning the company to deliver long-term profitable growth. It expects to gain from these actions this year and deliver another year of earnings growth.
Price Performance
Quaker Chemical’s shares are up 1.2% in the past year compared with the industry’s 21.4% rise.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
KWR 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 matched it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 27% 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.