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) Q2 Earnings Meet, Sales Lag Estimates
Read MoreHide Full Article
Versum Materials, Inc. recorded profit of $50.4 million or 46 cents per share in second-quarter fiscal 2019 (ended Mar 31, 2019), down 18% from $61.6 million or 56 cents a year ago. The bottom line in the reported quarter was hurt by transaction- related expenses, higher taxes and lower revenues.
Barring one-time items, adjusted earnings came in at 57 cents per share, which matched the Zacks Consensus Estimate.
Sales fell around 4% year over year to $326.2 million for the quarter, affected by lower sales in both Materials and Delivery Systems & Services (DS&S) segments. The figure, trailed the Zacks Consensus Estimate of $337.5 million.
Versum Materials Inc. Price, Consensus and EPS Surprise
Revenues at the Materials segment edged down 1% year over year to $216.5 million in the reported quarter as volume growth was masked by unfavorable price/mix and currency impacts. Performance was impacted by weaker demand in foundry.
Sales at the DS&S unit dropped 10% year over year to $109.1 million in the quarter, affected by weaker demand and project timing.
Financials
Versum Materials ended the quarter with cash and cash equivalents of $390.8 million, up around 54% year over year. Long-term debt was $972.2 million, down 0.4% year over year.
Cash from operations was $73.3 million for six months ended Mar 31, up from $56.5 million a year-ago.
Outlook
Versum Materials, in April 2019, entered into a definitive merger deal with Merck KGaA. The merger is expected to create a leading electronic materials player focused on the semiconductor and display industries. The companies are working towards closing the transaction in second-half 2019.
Versum Materials sees sales in the range of $1.38-$1.43 billion for fiscal 2019 (up 1-4% year over year). Adjusted EBITDA has been forecast between $465 million and $485 million (up 4-9% year over year).
Price Performance
Shares of Versum Materials have gained 31.9% over a year compared with the industry’s 0.9% rise.
Zacks Rank and Stocks to Consider
Versum Materials currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include AngloGold Ashanti Limited (AU - Free Report) , Flexible Solutions International Inc. (FSI - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
AngloGold has an expected earnings growth rate of 86.8% for the current year and carries a Zacks Rank #1 (Strong Buy). The company’s shares have shot up around 38% over the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Flexible Solutions has an expected earnings growth rate of 171.4% for the current year and carries a Zacks Rank #2 (Buy). Its shares have rallied roughly 88% in the past year.
Air Products has an expected earnings growth rate of 10.3% for the current fiscal year and carries a Zacks Rank #2. Its shares have gained around 24% in the past year.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Image: Bigstock
Versum Materials (VSM) Q2 Earnings Meet, Sales Lag Estimates
Versum Materials, Inc. recorded profit of $50.4 million or 46 cents per share in second-quarter fiscal 2019 (ended Mar 31, 2019), down 18% from $61.6 million or 56 cents a year ago. The bottom line in the reported quarter was hurt by transaction- related expenses, higher taxes and lower revenues.
Barring one-time items, adjusted earnings came in at 57 cents per share, which matched the Zacks Consensus Estimate.
Sales fell around 4% year over year to $326.2 million for the quarter, affected by lower sales in both Materials and Delivery Systems & Services (DS&S) segments. The figure, trailed the Zacks Consensus Estimate of $337.5 million.
Versum Materials Inc. Price, Consensus and EPS Surprise
Versum Materials Inc. price-consensus-eps-surprise-chart | Versum Materials Inc. Quote
Segment Highlights
Revenues at the Materials segment edged down 1% year over year to $216.5 million in the reported quarter as volume growth was masked by unfavorable price/mix and currency impacts. Performance was impacted by weaker demand in foundry.
Sales at the DS&S unit dropped 10% year over year to $109.1 million in the quarter, affected by weaker demand and project timing.
Financials
Versum Materials ended the quarter with cash and cash equivalents of $390.8 million, up around 54% year over year. Long-term debt was $972.2 million, down 0.4% year over year.
Cash from operations was $73.3 million for six months ended Mar 31, up from $56.5 million a year-ago.
Outlook
Versum Materials, in April 2019, entered into a definitive merger deal with Merck KGaA. The merger is expected to create a leading electronic materials player focused on the semiconductor and display industries. The companies are working towards closing the transaction in second-half 2019.
Versum Materials sees sales in the range of $1.38-$1.43 billion for fiscal 2019 (up 1-4% year over year). Adjusted EBITDA has been forecast between $465 million and $485 million (up 4-9% year over year).
Price Performance
Shares of Versum Materials have gained 31.9% over a year compared with the industry’s 0.9% rise.
Zacks Rank and Stocks to Consider
Versum Materials currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include AngloGold Ashanti Limited (AU - Free Report) , Flexible Solutions International Inc. (FSI - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
AngloGold has an expected earnings growth rate of 86.8% for the current year and carries a Zacks Rank #1 (Strong Buy). The company’s shares have shot up around 38% over the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Flexible Solutions has an expected earnings growth rate of 171.4% for the current year and carries a Zacks Rank #2 (Buy). Its shares have rallied roughly 88% in the past year.
Air Products has an expected earnings growth rate of 10.3% for the current fiscal year and carries a Zacks Rank #2. Its shares have gained around 24% in the past year.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>