We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ODC Q3 Earnings Jump 25% Y/Y as Record Sales Drive the Stock
Read MoreHide Full Article
Shares of Oil-Dri Corporation of America (ODC - Free Report) have gained 17.3% since reporting results for the third quarter of fiscal 2026, outperforming the S&P 500’s 0.2% advance. The stock has also significantly outpaced the broader market over the past month, rising 28.9% against a 0.6% decline for the S&P 500.
Oil-Dri reported record fiscal third-quarter net sales of $126.3 million, up 9% from $115.5 million in the prior-year period, while net income increased 25% to $14.5 million from $11.6 million. Diluted earnings per common share rose 25% to $1 from 80 cents a year earlier. Operating income climbed 23% to $17.1 million, and EBITDA increased 17% to $23.8 million. The company attributed the stronger performance to higher sales across both business segments, and lower selling, general and administrative expenses, partially offset by higher production costs.
Oil-Dri Corporation Of America Price, Consensus and EPS Surprise
The Retail and Wholesale Products Group remained the primary growth engine during the quarter. Segment sales increased 13% year over year to a record $82.5 million, while operating income rose 16% to $11.3 million. Management said that gains were driven largely by cat litter products, supported by strong demand for crystal, lightweight and coarse litter offerings. Co-packaged cat litter sales surged 94%, reaching a record level after the company expanded its portfolio to include lightweight litter products. Domestic cat litter sales, excluding co-packaged products, increased 10% to $57.9 million.
The Business-to-Business segment posted more modest growth. Sales increased 3% year over year to $43.8 million, reflecting stronger agricultural and animal health sales, while operating income declined 3% to $13 million as higher costs offset the benefit of increased sales. Agricultural product revenues rose 7% to $12.4 million, while Amlan International, the company’s animal health business, recorded a 10% sales increase to $6.4 million. Fluids purification revenues slipped 1% to $25 million.
Margin Pressure & Cost Headwinds
Despite strong earnings growth, profitability was pressured by higher costs. Gross profit increased only 2% to $33.7 million, and the gross margin narrowed to 26.7% from 28.6% a year earlier. The company cited a 6% increase in domestic cost of goods sold per ton, led by higher purchased material, labor, packaging and transportation expenses. During the earnings call, chief financial officer Susan Kreh noted that the gross margin was affected by a 190-basis-point year-over-year decline as inflationary pressures persisted across several input categories.
Offsetting some of those pressures, SG&A expenses declined 13% to $16.6 million due to a lower corporate bonus accrual. This reduction helped operating income grow faster than revenues during the quarter.
Management Commentary
President and chief executive officer Daniel Jaffee said the company rebounded from two quarters of difficult comparisons and delivered results that exceeded the prior year. He highlighted record revenue growth, disciplined expense management and strong cash generation despite inflationary pressures. Jaffee also noted that while conflict in the Middle East contributed to broader market volatility, it did not materially affect the fiscal third-quarter results.
Management emphasized operational resilience following Winter Storm Fern, which disrupted supply chains earlier in the fiscal year. The company reported a 99.9% fill rate during the quarter and reduced backlog by $2.2 million, shifting some revenue recognition into the fiscal third quarter. During the earnings call, Jaffee said that investments made over the past several years in manufacturing infrastructure helped the company maintain customer service levels and earn supplier recognition from major customers.
Cash Flow & Financial Position
Oil-Dri continued to generate substantial cash. Cash and cash equivalents totaled $62.9 million at April 30, 2026, up from $50.5 million at the end of fiscal 2025. For the first nine months of fiscal 2026, the operating cash flow reached $53.2 million. Management said that strong cash generation supported capital investments, dividends and share repurchases while maintaining balance-sheet strength.
Outlook
Management expressed confidence in achieving its fiscal 2026 plan and surpassing the prior year’s net income. However, the company cautioned that geopolitical uncertainty, particularly in the Middle East, along with potential increases in transportation and input costs, could create headwinds in the final quarter of the fiscal year.
Other Developments
Oil-Dri announced a 10% increase in its quarterly dividend, marking its 23rd consecutive year of dividend growth. The board declared dividends of 22.5 cents per common share and 16.8 cents per Class B share. In addition, the board authorized the repurchase of up to 500,000 shares of common stock, supplementing previously authorized repurchase capacity. Management said that the actions reflect confidence in the company’s prospects and commitment to long-term shareholder returns.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
ODC Q3 Earnings Jump 25% Y/Y as Record Sales Drive the Stock
Shares of Oil-Dri Corporation of America (ODC - Free Report) have gained 17.3% since reporting results for the third quarter of fiscal 2026, outperforming the S&P 500’s 0.2% advance. The stock has also significantly outpaced the broader market over the past month, rising 28.9% against a 0.6% decline for the S&P 500.
Oil-Dri reported record fiscal third-quarter net sales of $126.3 million, up 9% from $115.5 million in the prior-year period, while net income increased 25% to $14.5 million from $11.6 million. Diluted earnings per common share rose 25% to $1 from 80 cents a year earlier. Operating income climbed 23% to $17.1 million, and EBITDA increased 17% to $23.8 million. The company attributed the stronger performance to higher sales across both business segments, and lower selling, general and administrative expenses, partially offset by higher production costs.
Oil-Dri Corporation Of America Price, Consensus and EPS Surprise
Oil-Dri Corporation Of America price-consensus-eps-surprise-chart | Oil-Dri Corporation Of America Quote
Revenue Growth Driven by Retail Strength
The Retail and Wholesale Products Group remained the primary growth engine during the quarter. Segment sales increased 13% year over year to a record $82.5 million, while operating income rose 16% to $11.3 million. Management said that gains were driven largely by cat litter products, supported by strong demand for crystal, lightweight and coarse litter offerings. Co-packaged cat litter sales surged 94%, reaching a record level after the company expanded its portfolio to include lightweight litter products. Domestic cat litter sales, excluding co-packaged products, increased 10% to $57.9 million.
The Business-to-Business segment posted more modest growth. Sales increased 3% year over year to $43.8 million, reflecting stronger agricultural and animal health sales, while operating income declined 3% to $13 million as higher costs offset the benefit of increased sales. Agricultural product revenues rose 7% to $12.4 million, while Amlan International, the company’s animal health business, recorded a 10% sales increase to $6.4 million. Fluids purification revenues slipped 1% to $25 million.
Margin Pressure & Cost Headwinds
Despite strong earnings growth, profitability was pressured by higher costs. Gross profit increased only 2% to $33.7 million, and the gross margin narrowed to 26.7% from 28.6% a year earlier. The company cited a 6% increase in domestic cost of goods sold per ton, led by higher purchased material, labor, packaging and transportation expenses. During the earnings call, chief financial officer Susan Kreh noted that the gross margin was affected by a 190-basis-point year-over-year decline as inflationary pressures persisted across several input categories.
Offsetting some of those pressures, SG&A expenses declined 13% to $16.6 million due to a lower corporate bonus accrual. This reduction helped operating income grow faster than revenues during the quarter.
Management Commentary
President and chief executive officer Daniel Jaffee said the company rebounded from two quarters of difficult comparisons and delivered results that exceeded the prior year. He highlighted record revenue growth, disciplined expense management and strong cash generation despite inflationary pressures. Jaffee also noted that while conflict in the Middle East contributed to broader market volatility, it did not materially affect the fiscal third-quarter results.
Management emphasized operational resilience following Winter Storm Fern, which disrupted supply chains earlier in the fiscal year. The company reported a 99.9% fill rate during the quarter and reduced backlog by $2.2 million, shifting some revenue recognition into the fiscal third quarter. During the earnings call, Jaffee said that investments made over the past several years in manufacturing infrastructure helped the company maintain customer service levels and earn supplier recognition from major customers.
Cash Flow & Financial Position
Oil-Dri continued to generate substantial cash. Cash and cash equivalents totaled $62.9 million at April 30, 2026, up from $50.5 million at the end of fiscal 2025. For the first nine months of fiscal 2026, the operating cash flow reached $53.2 million. Management said that strong cash generation supported capital investments, dividends and share repurchases while maintaining balance-sheet strength.
Outlook
Management expressed confidence in achieving its fiscal 2026 plan and surpassing the prior year’s net income. However, the company cautioned that geopolitical uncertainty, particularly in the Middle East, along with potential increases in transportation and input costs, could create headwinds in the final quarter of the fiscal year.
Other Developments
Oil-Dri announced a 10% increase in its quarterly dividend, marking its 23rd consecutive year of dividend growth. The board declared dividends of 22.5 cents per common share and 16.8 cents per Class B share. In addition, the board authorized the repurchase of up to 500,000 shares of common stock, supplementing previously authorized repurchase capacity. Management said that the actions reflect confidence in the company’s prospects and commitment to long-term shareholder returns.