We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Versum Materials (VSM) Q4 Earnings & Revenues Top Estimates
Read MoreHide Full Article
Versum Materials, Inc. recorded profit of $53.9 million or 49 cents per share in fourth-quarter fiscal 2018 (ended Sep 30, 2018), up roughly 20% from $45.1 million or 41 cents a year ago.
Barring one-time items, adjusted earnings came in at 60 cents per share, which beat the Zacks Consensus Estimate of 57 cents.
Sales rose around 19% year over year to $350.8 million for the quarter, mainly driven by strong volume gains in Materials and Delivery Systems & Services (DS&S) segments. The figure also topped the Zacks Consensus Estimate of $323.2 million.
Versum Materials Inc. Price, Consensus and EPS Surprise
Profit for fiscal 2018 was $197.5 million or $1.80 per share, up roughly 2% from $193.3 million or $1.77 per share a year ago.
Sales rose around 22% year over year to $1,372.3 million for fiscal 2018.
Segment Highlights
Revenues at the Materials segment rose 8% year over year to $233.6 million in the reported quarter, driven by strong volume gains in Advanced Materials and Process Materials.
Sales at the DS&S unit jumped 52% year over year to $116.6 million in the quarter on the back of continued strong growth in equipment and installation project.
Financials
Versum Materials ended fiscal 2018 with cash and cash equivalents of $399.8 million, up around 47% year over year. Long-term debt was $974.2 million, essentially flat year over year.
Outlook
For fiscal 2019, the company sees sales in the range of $1,425-$1,475 million and adjusted EBITDA of between $475 million and $495 million.
The company is optimistic about the prospects for semiconductor materials over the long term and envisions another year of strong growth in fiscal 2019. It has a number of organic growth opportunities that are expected to deliver outstanding returns for its customers and shareholders. Versum Materials also noted that it has entered fiscal 2019 with a strong equipment order book and expects its equipment business to outperform the underlying market.
Price Performance
Shares of Versum Materials have lost 9.4% over a year against the industry’s 1.5% rise.
Zacks Rank & Stocks to Consider
Versum Materials currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks worth considering in the basic materials space include Methanex Corporation (MEOH - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and KMG Chemicals, Inc. .
CF Industries has expected long-term earnings growth rate of 6% and carries a Zacks Rank #1. Its shares have rallied 44% in a year.
KMG Chemicals has expected long-term earnings growth rate of 28.5% and carries a Zacks Rank #2 (Buy). Its shares have gained 44% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Versum Materials (VSM) Q4 Earnings & Revenues Top Estimates
Versum Materials, Inc. recorded profit of $53.9 million or 49 cents per share in fourth-quarter fiscal 2018 (ended Sep 30, 2018), up roughly 20% from $45.1 million or 41 cents a year ago.
Barring one-time items, adjusted earnings came in at 60 cents per share, which beat the Zacks Consensus Estimate of 57 cents.
Sales rose around 19% year over year to $350.8 million for the quarter, mainly driven by strong volume gains in Materials and Delivery Systems & Services (DS&S) segments. The figure also topped the Zacks Consensus Estimate of $323.2 million.
Versum Materials Inc. Price, Consensus and EPS Surprise
Versum Materials Inc. price-consensus-eps-surprise-chart | Versum Materials Inc. Quote
FY18 Results
Profit for fiscal 2018 was $197.5 million or $1.80 per share, up roughly 2% from $193.3 million or $1.77 per share a year ago.
Sales rose around 22% year over year to $1,372.3 million for fiscal 2018.
Segment Highlights
Revenues at the Materials segment rose 8% year over year to $233.6 million in the reported quarter, driven by strong volume gains in Advanced Materials and Process Materials.
Sales at the DS&S unit jumped 52% year over year to $116.6 million in the quarter on the back of continued strong growth in equipment and installation project.
Financials
Versum Materials ended fiscal 2018 with cash and cash equivalents of $399.8 million, up around 47% year over year. Long-term debt was $974.2 million, essentially flat year over year.
Outlook
For fiscal 2019, the company sees sales in the range of $1,425-$1,475 million and adjusted EBITDA of between $475 million and $495 million.
The company is optimistic about the prospects for semiconductor materials over the long term and envisions another year of strong growth in fiscal 2019. It has a number of organic growth opportunities that are expected to deliver outstanding returns for its customers and shareholders. Versum Materials also noted that it has entered fiscal 2019 with a strong equipment order book and expects its equipment business to outperform the underlying market.
Price Performance
Shares of Versum Materials have lost 9.4% over a year against the industry’s 1.5% rise.
Zacks Rank & Stocks to Consider
Versum Materials currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks worth considering in the basic materials space include Methanex Corporation (MEOH - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and KMG Chemicals, Inc. .
Methanex has expected long-term earnings growth rate of 15% and sports a Zacks Rank #1 (Strong Buy). Its shares have gained 28% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
CF Industries has expected long-term earnings growth rate of 6% and carries a Zacks Rank #1. Its shares have rallied 44% in a year.
KMG Chemicals has expected long-term earnings growth rate of 28.5% and carries a Zacks Rank #2 (Buy). Its shares have gained 44% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>