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Ingevity's (NGVT) Earnings and Revenues Beat Estimates in Q1
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Ingevity Corporation (NGVT - Free Report) incurred loss of $1.54 per share in the first quarter of 2024. It posted earnings of $1.35 in the prior-year quarter.
Adjusted earnings in the reported quarter were 52 cents per share, down from $1.09 in the year-ago quarter. The figure beat the Zacks Consensus Estimate of 37 cents.
The company’s revenues declined around 13.4% year over year to $340.1 million in the quarter but beat the Zacks Consensus Estimate of $319.9 million. The decline was mainly due to the repositioning of the Performance Chemicals unit, which included the exit of some end markets within the Industrial Specialties product line.
Ingevity Corporation Price, Consensus and EPS Surprise
The Performance Chemicals division generated revenues of $147 million in the reported quarter, down around 21% year over year. The Zacks Consensus Estimate for the same was $121.9 million. Road Technologies product line sales of $45.7 million were flat year over year, missing the Zacks Consensus Estimate of $49.5 million. Industrial Specialties product line sales of $101.3 million fell 28% due to the segment's repositioning and decreased industrial demand, beating the Zacks Consensus Estimate of $83.9 million.
Revenues in the Performance Materials unit were up 3% year over year to $145.1 million. It missed the consensus estimate of $149.5 million. The increase was led by higher pricing and larger volumes in automotive end markets across all regions. Segment EBITDA was $78.0 million, up 12% from the previous-year quarter, principally due to decreased input costs, particularly energy and increased operational efficiency, resulting in segment EBITDA margins of 53.8%.
The Advanced Polymer Technologies unit logged sales of $48 million, down 27% year over year, marginally missing Zacks Consensus Estimate of $48.3 million. The segment's end markets are experiencing demand weakening, which drove the downside. Segment EBITDA was $9.5 million, marking a 31% plunge owing to decreased volume and price, slightly offset by lower input costs. The segment EBITDA margin was 19.8%.
Financials
First-quarter operating cash flow was negative $12.1 million, with negative free cash flow of $28.7 million, reflecting regular seasonal inventory build in the first quarter and a cash impact of $19.8 million from CTO resale losses.
There were no share repurchases during the quarter, leaving $353.4 million under the current $500 million board authorization. Net leverage was 3.6 times, indicating lower adjusted EBITDA than last year.
Outlook
The company sees its sales for 2024 in the band of $1.4-$1.55 billion and adjusted EBITDA in the range of $365-$390 million.
Price Performance
Shares of Ingevity have lost 14.9% in a year compared with a 10.5% decline of the industry.
The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The figure has remained stable in the past 60 days.
L.B. Foster is slated to report first-quarter results on May 7. The consensus estimate for FSTR’s first-quarter earnings is pegged at a loss of 16 cents per share. The company’s shares have rallied 118.6% in the past year.
American Vanguard is expected to report first-quarter results on May 14. The consensus estimate for AVD’s first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.
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Ingevity's (NGVT) Earnings and Revenues Beat Estimates in Q1
Ingevity Corporation (NGVT - Free Report) incurred loss of $1.54 per share in the first quarter of 2024. It posted earnings of $1.35 in the prior-year quarter.
Adjusted earnings in the reported quarter were 52 cents per share, down from $1.09 in the year-ago quarter. The figure beat the Zacks Consensus Estimate of 37 cents.
The company’s revenues declined around 13.4% year over year to $340.1 million in the quarter but beat the Zacks Consensus Estimate of $319.9 million. The decline was mainly due to the repositioning of the Performance Chemicals unit, which included the exit of some end markets within the Industrial Specialties product line.
Ingevity Corporation Price, Consensus and EPS Surprise
Ingevity Corporation price-consensus-eps-surprise-chart | Ingevity Corporation Quote
Segment Highlights
The Performance Chemicals division generated revenues of $147 million in the reported quarter, down around 21% year over year. The Zacks Consensus Estimate for the same was $121.9 million. Road Technologies product line sales of $45.7 million were flat year over year, missing the Zacks Consensus Estimate of $49.5 million. Industrial Specialties product line sales of $101.3 million fell 28% due to the segment's repositioning and decreased industrial demand, beating the Zacks Consensus Estimate of $83.9 million.
Revenues in the Performance Materials unit were up 3% year over year to $145.1 million. It missed the consensus estimate of $149.5 million. The increase was led by higher pricing and larger volumes in automotive end markets across all regions. Segment EBITDA was $78.0 million, up 12% from the previous-year quarter, principally due to decreased input costs, particularly energy and increased operational efficiency, resulting in segment EBITDA margins of 53.8%.
The Advanced Polymer Technologies unit logged sales of $48 million, down 27% year over year, marginally missing Zacks Consensus Estimate of $48.3 million. The segment's end markets are experiencing demand weakening, which drove the downside. Segment EBITDA was $9.5 million, marking a 31% plunge owing to decreased volume and price, slightly offset by lower input costs. The segment EBITDA margin was 19.8%.
Financials
First-quarter operating cash flow was negative $12.1 million, with negative free cash flow of $28.7 million, reflecting regular seasonal inventory build in the first quarter and a cash impact of $19.8 million from CTO resale losses.
There were no share repurchases during the quarter, leaving $353.4 million under the current $500 million board authorization. Net leverage was 3.6 times, indicating lower adjusted EBITDA than last year.
Outlook
The company sees its sales for 2024 in the band of $1.4-$1.55 billion and adjusted EBITDA in the range of $365-$390 million.
Price Performance
Shares of Ingevity have lost 14.9% in a year compared with a 10.5% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
NGVT currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth a look in the basic materials space include Gold Fields Limited (GFI - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and L.B. Foster Company (FSTR - Free Report) and American Vanguard Corporation (AVD - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The figure has remained stable in the past 60 days.
L.B. Foster is slated to report first-quarter results on May 7. The consensus estimate for FSTR’s first-quarter earnings is pegged at a loss of 16 cents per share. The company’s shares have rallied 118.6% in the past year.
American Vanguard is expected to report first-quarter results on May 14. The consensus estimate for AVD’s first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.