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Koppers Earnings Trounce Estimates, Revenues Fall Short in Q3

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Key Takeaways

  • Koppers Holdings clocked adjusted earnings of $1.37 per share in Q3, beating estimates of $1.25.
  • Revenues for the quarter, however, were $554.3 million, less than estimates of $571.8 million.
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Koppers Holdings Inc. (KOP - Free Report) logged profits (attributable to the company) of $22.8 million or $1.09 per share for the third quarter of 2024, down from a profit of $26.3 million or $1.22 per share a year ago. Barring one-time items, adjusted earnings were $1.37 per share for the quarter, up from $1.32 per share a year ago. It topped the Zacks Consensus Estimate of $1.25.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Koppers recorded revenues of $554.3 million for the quarter, up around 1% year over year. The top line missed the Zacks Consensus Estimate of $571.8 million. The Railroad and Utility Products and Services (“RUPS”) segment delivered record sales on higher pricing. KOP saw lower sales across Performance Chemicals (PC) and Carbon Materials and Chemicals (“CMC”) segments in the reported quarter.

Koppers Holdings Inc. Price, Consensus and EPS Surprise

Koppers Holdings Inc. Price, Consensus and EPS Surprise

Koppers Holdings Inc. price-consensus-eps-surprise-chart | Koppers Holdings Inc. Quote

KOP's Segment Highlights

Sales from the RUPS segment rose around 6% year over year to $248.1 million in the reported quarter. It was below the consensus estimate of $258.9 million. Sales were driven by increased pricing across several markets and increased activity in the railroad bridge services business, partly masked by reduced activity in the crosstie recovery business.

The PC segment recorded sales of $176.7 million in the quarter, down around 1.5% year over year. It was below the consensus estimate of $183.1 million. Sales were impacted as sales to Brown Wood now being affiliated sales.

Sales from the CMC division fell 5.5% year over year to $129.5 million. It missed the consensus estimate of $132.2 million. The downside was due to reduced sales prices across most products and lower volumes of carbon black feedstock.

Koppers' Financials

Koppers ended the quarter with cash and cash equivalents of $44.5 million, down around 9% sequentially. Long-term debt was $975.9 million, down around 1% sequentially.

KOP's Outlook

Koppers anticipates sales for 2024 to be roughly $2.1 billion factoring in the current competitive landscape, global economic conditions and the prevailing uncertainty associated with geopolitical and supply chain challenges. It expects adjusted EBITDA to be in the band of $270-$275 million for the year, including the acquisition of Brown Wood, which was completed on April 1, 2024. Koppers sees adjusted earnings per share to be $4.25-$4.45 for 2024.

The company also expects capital expenditures of roughly $80 million for this year. It sees operating cash flows of around $100-$125 million in 2024, barring any impact from pension termination.

KOP Stock’s Price Performance

Koppers’ shares have lost 13.4% in the past year compared with the Zacks Chemicals Diversified industry’s 4.6% rise.

 

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KOP’s Zacks Rank & Other Chemicals Releases

KOP currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DuPont de Nemours, Inc. (DD - Free Report) logged adjusted earnings of $1.18 per share in the third quarter, topping the Zacks Consensus Estimate of $1.04. DD raised its full-year 2024 projections for operating EBITDA and adjusted earnings per share. 

The Chemours Company (CC - Free Report) recorded adjusted earnings of 40 cents for the third quarter, topping the Zacks Consensus Estimate of 32 cents. CC expects consolidated net sales to decline in the mid to high-single digits sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range compared with third-quarter 2024 results. 

PPG Industries, Inc. (PPG - Free Report) logged third-quarter adjusted earnings per share of $2.13, missing the Zacks Consensus Estimate of $2.15. PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for full-year 2024.

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