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.
W. R. Grace (GRA) Tops Q4 Earnings Estimates, Lags Revenues
Read MoreHide Full Article
W. R. Grace & Co. slipped to a loss of $28.3 million or 42 cents per share in fourth-quarter 2019 from a profit of $69.1 million or $1.03 per share a year ago. The bottom line in the reported quarter was hurt by a mark-to-market pension adjustment and charges related to legacy liabilities.
Barring one-time items, adjusted earnings for the quarter were $1.31 per share, which surpassed the Zacks Consensus Estimate of $1.27.
The company’s revenues fell roughly 3% year over year to $504.5 million in the quarter. Moreover, it missed the Zacks Consensus Estimate of $508.2 million.
Revenues were hurt by reduced sales volumes and the weak global manufacturing environment that more than offset better pricing across all businesses.
W.R. Grace & Co. Price, Consensus and EPS Surprise
For 2019, earnings were $1.89 per share, down from $2.49 per share a year ago. The decline is due to charges associated with pension adjustments and legacy liabilities. Adjusted earnings rose 5.8% year over year to $4.38 per share.
Revenues were $1,958.1 million for the full year, up around 1% year over year.
Segment Highlights
Revenues from the Catalysts Technologies unit fell around 4% year over year (down 3% on a constant currency basis) to $389.9 million in the reported quarter. Sales were impacted by lower volumes that more than offset higher pricing.
The Materials Technologies segment raked in sales of $114.6 million in the quarter, down 0.3% year over year. Sales rose 2% on constant currency, aided by better pricing.
Financials
The company ended 2019 with cash and cash equivalents of $282.5 million, up around 41% year over year. Long-term debt was $1,957.3 million at the end of the year, essentially flat year over year.
The company returned $102 million to shareholders through dividends and share repurchases in 2019.
Outlook
Moving ahead, W. R. Grace sees slow sales growth in 2020 amid the uncertain global manufacturing environment. However, it expects stronger earnings and cash flow growth.
Factoring in the weak manufacturing environment and the potential effects of the coronavirus, the company expects flat to 3% sales growth in 2020.
W. R. Grace also expects adjusted earnings of $4.73-$4.91 per share for 2020, reflecting 8-12% year-over-year growth.
Price Performance
Shares of W. R. Grace have lost 14.2% over a year against the industry’s rise of 8.3%.
Zacks Rank & Key Picks
W. R. Grace currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space include Daqo New Energy Corp. (DQ - Free Report) , Royal Gold, Inc. (RGLD - Free Report) and Pretium Resources Inc. .
Daqo New Energy has projected earnings growth rate of 326.3% for 2020 and sports a Zacks Rank #1 (Strong Buy). The company’s shares have rallied roughly 70% in a year’s time. You can see the complete list of today’s Zacks #1 Rank stocks here.
Royal Gold has estimated earnings growth rate of 83.5% for fiscal 2020 and carries a Zacks Rank #1. The company’s shares have shot up roughly 28% in a year’s time.
Pretium Resources has projected earnings growth rate of 106.9% for 2020 and carries a Zacks Rank #2 (Buy). The company’s shares have rallied around 31% over a year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
W. R. Grace (GRA) Tops Q4 Earnings Estimates, Lags Revenues
W. R. Grace & Co. slipped to a loss of $28.3 million or 42 cents per share in fourth-quarter 2019 from a profit of $69.1 million or $1.03 per share a year ago. The bottom line in the reported quarter was hurt by a mark-to-market pension adjustment and charges related to legacy liabilities.
Barring one-time items, adjusted earnings for the quarter were $1.31 per share, which surpassed the Zacks Consensus Estimate of $1.27.
The company’s revenues fell roughly 3% year over year to $504.5 million in the quarter. Moreover, it missed the Zacks Consensus Estimate of $508.2 million.
Revenues were hurt by reduced sales volumes and the weak global manufacturing environment that more than offset better pricing across all businesses.
W.R. Grace & Co. Price, Consensus and EPS Surprise
W.R. Grace & Co. price-consensus-eps-surprise-chart | W.R. Grace & Co. Quote
Full-Year Results
For 2019, earnings were $1.89 per share, down from $2.49 per share a year ago. The decline is due to charges associated with pension adjustments and legacy liabilities. Adjusted earnings rose 5.8% year over year to $4.38 per share.
Revenues were $1,958.1 million for the full year, up around 1% year over year.
Segment Highlights
Revenues from the Catalysts Technologies unit fell around 4% year over year (down 3% on a constant currency basis) to $389.9 million in the reported quarter. Sales were impacted by lower volumes that more than offset higher pricing.
The Materials Technologies segment raked in sales of $114.6 million in the quarter, down 0.3% year over year. Sales rose 2% on constant currency, aided by better pricing.
Financials
The company ended 2019 with cash and cash equivalents of $282.5 million, up around 41% year over year. Long-term debt was $1,957.3 million at the end of the year, essentially flat year over year.
The company returned $102 million to shareholders through dividends and share repurchases in 2019.
Outlook
Moving ahead, W. R. Grace sees slow sales growth in 2020 amid the uncertain global manufacturing environment. However, it expects stronger earnings and cash flow growth.
Factoring in the weak manufacturing environment and the potential effects of the coronavirus, the company expects flat to 3% sales growth in 2020.
W. R. Grace also expects adjusted earnings of $4.73-$4.91 per share for 2020, reflecting 8-12% year-over-year growth.
Price Performance
Shares of W. R. Grace have lost 14.2% over a year against the industry’s rise of 8.3%.
Zacks Rank & Key Picks
W. R. Grace currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space include Daqo New Energy Corp. (DQ - Free Report) , Royal Gold, Inc. (RGLD - Free Report) and Pretium Resources Inc. .
Daqo New Energy has projected earnings growth rate of 326.3% for 2020 and sports a Zacks Rank #1 (Strong Buy). The company’s shares have rallied roughly 70% in a year’s time. You can see the complete list of today’s Zacks #1 Rank stocks here.
Royal Gold has estimated earnings growth rate of 83.5% for fiscal 2020 and carries a Zacks Rank #1. The company’s shares have shot up roughly 28% in a year’s time.
Pretium Resources has projected earnings growth rate of 106.9% for 2020 and carries a Zacks Rank #2 (Buy). The company’s shares have rallied around 31% over a year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>