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Quaker Chemical's Q4 Earnings Lag Estimates, Revenues Beat
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Quaker Chemical Corporation (KWR - Free Report) recorded earnings of 81 cents per share in the fourth quarter of 2024, down from earnings of $1.12 per share in the year-ago quarter.
Barring one-time items, earnings came in at $1.33 per share for the reported quarter, missing the Zacks Consensus Estimate of $1.62.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
Net sales fell around 5% year over year to $444.1 million in the quarter. Sales, however, beat the Zacks Consensus Estimate of $441.7 million. The downside was due to lower selling prices and product mix, unfavorable currency swings and reduced organic sales volumes due to weak end-market conditions.
KWR’s Segment Highlights
Sales from the Americas segment fell around 8% year over year to $208.6 million in the reported quarter. It was above the consensus estimate of $201 million. Sales were hurt by lower sales volumes, unfavorable currency impact, and decreased selling price and product mix.
The EMEA unit recorded sales of $125.9 million in the quarter, down 7% year over year. It missed the consensus estimate of $130 million. Lower selling prices and mix as well as reduced organic sales volumes impacted sales.
The Asia/Pacific unit logged sales of $109.6 million, up around 5% year over year. It beat the consensus estimate of $107 million. Higher sales volumes and contributions from the Sutai Group acquisition more than offset a decline in selling price and product mix.
KWR’s FY24 Results
Earnings (as reported) for full-year 2024 were $6.51 per share, up from $6.26 a year ago. Sales fell around 6% year over year to around $1,839.7 million.
Quaker Chemical’s Financials
The company ended the quarter with cash and cash equivalents of around $188.9 million, down roughly 3% year over year. Long-term debt was around $669.6 million, down around 8% from the prior year.
KWR generated an operating cash flow of $204.6 million in 2024.
The company returned $82.4 million to shareholders through dividends and share repurchases in 2024.
KWR’s Outlook
Quaker Chemical noted that it remains committed to delivering sustained growth and share gains by advancing its enterprise strategy, refocusing the organization around its customer intimate model and effectively allocating capital. It is taking additional actions that are expected to deliver run-rate cost savings of at least $20 million this year. KWR expects these actions to boost its operational efficiency, improve competitiveness and allow it to better leverage its global scale. It expects to deliver revenue, adjusted EBITDA and earnings growth in 2025.
KWR’s Stock Price Performance
Quaker Chemical’s shares have lost 27.1% in the past year compared with the Zacks Chemicals Specialty industry’s 20.8% decline.
Image Source: Zacks Investment Research
KWR’s Zacks Rank & Key Picks
KWR currently carries a Zacks Rank #5 (Strong Sell).
Fortuna is scheduled to release fourth-quarter results on March 5. The Zacks Consensus Estimate for FSM’s fourth-quarter earnings is pegged at 16 cents per share. FSM beat the Zacks Consensus Estimate in two of the last four quarters while missing twice, with the average earnings surprise being 53.5%.
Kronos Worldwide is expected to release fourth-quarter results on March 5. The consensus estimate for KRO’s fourth-quarter earnings stands at 11 cents. KRO beat the Zacks Consensus Estimate in three of the last four quarters while missing once, with the average earnings surprise being 41.7%.
Orla Mining is slated to report fourth-quarter results on March 18. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 8 cents. ORLA beat the Zacks Consensus Estimate in two of the last four quarters while missing once and meeting on the other occasion, with the average earnings surprise being 97.9%.
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Quaker Chemical's Q4 Earnings Lag Estimates, Revenues Beat
Quaker Chemical Corporation (KWR - Free Report) recorded earnings of 81 cents per share in the fourth quarter of 2024, down from earnings of $1.12 per share in the year-ago quarter.
Barring one-time items, earnings came in at $1.33 per share for the reported quarter, missing the Zacks Consensus Estimate of $1.62.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
Net sales fell around 5% year over year to $444.1 million in the quarter. Sales, however, beat the Zacks Consensus Estimate of $441.7 million. The downside was due to lower selling prices and product mix, unfavorable currency swings and reduced organic sales volumes due to weak end-market conditions.
KWR’s Segment Highlights
Sales from the Americas segment fell around 8% year over year to $208.6 million in the reported quarter. It was above the consensus estimate of $201 million. Sales were hurt by lower sales volumes, unfavorable currency impact, and decreased selling price and product mix.
The EMEA unit recorded sales of $125.9 million in the quarter, down 7% year over year. It missed the consensus estimate of $130 million. Lower selling prices and mix as well as reduced organic sales volumes impacted sales.
The Asia/Pacific unit logged sales of $109.6 million, up around 5% year over year. It beat the consensus estimate of $107 million. Higher sales volumes and contributions from the Sutai Group acquisition more than offset a decline in selling price and product mix.
KWR’s FY24 Results
Earnings (as reported) for full-year 2024 were $6.51 per share, up from $6.26 a year ago. Sales fell around 6% year over year to around $1,839.7 million.
Quaker Chemical’s Financials
The company ended the quarter with cash and cash equivalents of around $188.9 million, down roughly 3% year over year. Long-term debt was around $669.6 million, down around 8% from the prior year.
KWR generated an operating cash flow of $204.6 million in 2024.
The company returned $82.4 million to shareholders through dividends and share repurchases in 2024.
KWR’s Outlook
Quaker Chemical noted that it remains committed to delivering sustained growth and share gains by advancing its enterprise strategy, refocusing the organization around its customer intimate model and effectively allocating capital. It is taking additional actions that are expected to deliver run-rate cost savings of at least $20 million this year. KWR expects these actions to boost its operational efficiency, improve competitiveness and allow it to better leverage its global scale. It expects to deliver revenue, adjusted EBITDA and earnings growth in 2025.
KWR’s Stock Price Performance
Quaker Chemical’s shares have lost 27.1% in the past year compared with the Zacks Chemicals Specialty industry’s 20.8% decline.
KWR’s Zacks Rank & Key Picks
KWR currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the Basic Materials space are Fortuna Mining Corp. (FSM - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Orla Mining Ltd. (ORLA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortuna is scheduled to release fourth-quarter results on March 5. The Zacks Consensus Estimate for FSM’s fourth-quarter earnings is pegged at 16 cents per share. FSM beat the Zacks Consensus Estimate in two of the last four quarters while missing twice, with the average earnings surprise being 53.5%.
Kronos Worldwide is expected to release fourth-quarter results on March 5. The consensus estimate for KRO’s fourth-quarter earnings stands at 11 cents. KRO beat the Zacks Consensus Estimate in three of the last four quarters while missing once, with the average earnings surprise being 41.7%.
Orla Mining is slated to report fourth-quarter results on March 18. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 8 cents. ORLA beat the Zacks Consensus Estimate in two of the last four quarters while missing once and meeting on the other occasion, with the average earnings surprise being 97.9%.