Innospec Inc. (IOSP - Free Report) logged a profit of $28.7 million or $1.17 per share in first-quarter 2019, up around 29% from a profit of $22.2 million or 90 cents in the year-ago quarter.
Barring one-time items, earnings were $1.25 per share (up from $1.02 per share a year ago), which surpassed the Zacks Consensus Estimate of $1.15.
The chemical maker’s revenues went up roughly 8% year over year to $388.3 million in the quarter. The company saw strong growth in its Fuel Specialties and Oilfield Services units.
Revenues in the Fuel Specialties segment rose 9% year over year to $156 million in the reported quarter on the back of higher volumes that rose 8%. Operating income was $32.9 million, up around 17% year over year.
The Performance Chemicals unit raked in sales of $118.1 million, down around 5% year over year. The division witnessed unfavorable currency impact of 5%. Volumes and price/mix were unchanged. Operating income rose 12% year over year at $13.5 million in the quarter.
Revenues in the Oilfield Services division climbed around 23% to $114.2 million, aided by higher volumes that rose 6% and price/mix benefit of 17%. The segment recorded an operating income of $7.8 million in the quarter, a more than two-fold year over year improvement.
The company generated no revenues in its Octane Additives division in the reported quarter. The division logged an operating loss of $2.8 million, up from a loss of $1.4 million a year ago.
Innospec ended the quarter with cash and cash equivalents of $123.5 million, up around 58% year over year. Long-term debt was $186.3 million, down around 6% year over year.
Net cash provided by operating activities was $13.2 million for the reported quarter versus a cash outflow of $2 million a year ago.
Innospec also declared its semi-annual dividend of 50 cents per share for the first half of 2019, representing an increase of 14%.
Moving ahead, Innospec said that it will remain focused on organic growth to develop innovative technologies along with potential acquisition opportunities. The company continues to invest in organic growth projects. Innospec also sees attractive business prospects for the balance of 2019 and beyond.
Shares of Innospec have gained 33.8% year to date, outperforming the industry’s 12.3% decline.
Zacks Rank and Other Stocks to Consider
Innospec currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include Materion Corporation (MTRN - Free Report) , Flexible Solutions International Inc. (FSI - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .
Materion has an expected earnings growth rate of 23.1% for the current year and carries a Zacks Rank #1 (Strong Buy). The company’s shares are up around 18% 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. Its shares have rallied roughly 85% 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 23% in the past year.
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