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Koppers (KOP) Earnings Beat Estimates, Revenues Lag in Q1
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Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $13 million or 59 cents per share for the first quarter of 2024, down from a profit of $25.5 million or $1.19 per share a year ago.
Barring one-time items, adjusted earnings were 62 cents per share for the quarter, down from $1.12 per share a year ago. It beat the Zacks Consensus Estimate of 61 cents.
Koppers recorded revenues of $497.6 million for the quarter, down around 3% year over year. The top line missed the Zacks Consensus Estimate of $503 million. The Railroad and Utility Products and Services (“RUPS”) segment delivered record sales on higher pricing and crosstie volumes. The Performance Chemicals (PC) segment also gained from higher volumes. The Carbon Materials and Chemicals (“CMC”) segment saw lower sales on reduced prices and volumes amid softer demand.
Koppers Holdings Inc. Price, Consensus and EPS Surprise
Sales from the RUPS segment rose around 6% year over year to $225.1 million in the reported quarter. It was below the consensus estimate of $229 million. Sales were driven by higher prices in several markets and increased volumes for crossties.
The PC segment recorded sales of $150.1 million in the quarter, up around 2% year over year. It beat the consensus estimate of $137 million. Sales were driven by higher volumes, partly offset by reduced prices in the Americas and Australasia.
Sales from the CMC division fell around 20% year over year to $122.4 million. It was below the consensus estimate of $129 million. The year-over-year downside was due to weaker market demand, lower sales prices across most products and reduced volumes of carbon pitch and carbon black feedstock.
Financials
Koppers ended the quarter with cash and cash equivalents of $49 million, down around 26% sequentially. Long-term debt was $865.1 million, up around 4% sequentially.
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 in the band of $265-$280 million for the year. Koppers sees adjusted earnings per share to be $4.10-$4.60 for 2024.
The company also expects capital expenditures of roughly $80-$90 million for this year.
Price Performance
Koppers’ shares have rallied 40.7% in a year compared with 0.4% rise recorded by the industry.
Sylvamo is slated to report first-quarter results on May 10. The consensus estimate for SLVM’s first-quarter earnings is pegged at $1.05. The company’s shares have rallied around 56% in the past year.
Integra Resources is expected to report first-quarter results on May 10. The Zacks Consensus Estimate for ITRG’s first-quarter earnings is pegged at a loss of 3 cents. The consensus estimate for ITRG’s first-quarter earnings has been stable in the past 60 days.
New Found Gold is expected to report first-quarter results on May 10. The consensus estimate for NFGC’s first-quarter earnings is pegged at a loss of 7 cents.
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Koppers (KOP) Earnings Beat Estimates, Revenues Lag in Q1
Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $13 million or 59 cents per share for the first quarter of 2024, down from a profit of $25.5 million or $1.19 per share a year ago.
Barring one-time items, adjusted earnings were 62 cents per share for the quarter, down from $1.12 per share a year ago. It beat the Zacks Consensus Estimate of 61 cents.
Koppers recorded revenues of $497.6 million for the quarter, down around 3% year over year. The top line missed the Zacks Consensus Estimate of $503 million. The Railroad and Utility Products and Services (“RUPS”) segment delivered record sales on higher pricing and crosstie volumes. The Performance Chemicals (PC) segment also gained from higher volumes. The Carbon Materials and Chemicals (“CMC”) segment saw lower sales on reduced prices and volumes amid softer 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 rose around 6% year over year to $225.1 million in the reported quarter. It was below the consensus estimate of $229 million. Sales were driven by higher prices in several markets and increased volumes for crossties.
The PC segment recorded sales of $150.1 million in the quarter, up around 2% year over year. It beat the consensus estimate of $137 million. Sales were driven by higher volumes, partly offset by reduced prices in the Americas and Australasia.
Sales from the CMC division fell around 20% year over year to $122.4 million. It was below the consensus estimate of $129 million. The year-over-year downside was due to weaker market demand, lower sales prices across most products and reduced volumes of carbon pitch and carbon black feedstock.
Financials
Koppers ended the quarter with cash and cash equivalents of $49 million, down around 26% sequentially. Long-term debt was $865.1 million, up around 4% sequentially.
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 in the band of $265-$280 million for the year. Koppers sees adjusted earnings per share to be $4.10-$4.60 for 2024.
The company also expects capital expenditures of roughly $80-$90 million for this year.
Price Performance
Koppers’ shares have rallied 40.7% in a year compared with 0.4% rise recorded by the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
KOP currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Sylvamo Corporation (SLVM - Free Report) , carrying a Zacks Rank #1 (Strong Buy), and Integra Resources Corp. (ITRG - Free Report) and New Found Gold Corp. (NFGC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sylvamo is slated to report first-quarter results on May 10. The consensus estimate for SLVM’s first-quarter earnings is pegged at $1.05. The company’s shares have rallied around 56% in the past year.
Integra Resources is expected to report first-quarter results on May 10. The Zacks Consensus Estimate for ITRG’s first-quarter earnings is pegged at a loss of 3 cents. The consensus estimate for ITRG’s first-quarter earnings has been stable in the past 60 days.
New Found Gold is expected to report first-quarter results on May 10. The consensus estimate for NFGC’s first-quarter earnings is pegged at a loss of 7 cents.