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Ingevity's (NGVT) Earnings and Sales Top Estimates in Q2

·3-min read

Ingevity Corporation NGVT recorded profits of $59.8 million or $1.54 per share in second-quarter 2022, up from a profit of $44.3 million or $1.10 in the year-ago quarter.

Excluding one-time items, adjusted earnings in the quarter were $1.73 per share, up from $155 a year ago. The figure topped the Zacks Consensus Estimate of $1.68.

The company’s revenues rose around 17% year over year to a record $419.9 million in the quarter, beating the Zacks Consensus Estimate of $406.5 million. It benefited from actions to increase prices, which helped it offset inflationary cost pressures.

 

Ingevity Corporation Price, Consensus and EPS Surprise

 

Ingevity Corporation Price, Consensus and EPS Surprise
Ingevity Corporation Price, Consensus and EPS Surprise

Ingevity Corporation price-consensus-eps-surprise-chart | Ingevity Corporation Quote

 

Segment Review

The Performance Chemicals division generated revenues of $297.5 million in the reported quarter, rising around 28% year over year. Sales rose around 21% in Engineered Polymers while sales in Industrial Specialties went up roughly 38%.

Revenues in the Performance Materials unit fell around 3% year over year to $122.4 million. Sales of activated carbon products were hurt by reduced automotive production due to the pandemic-related shutdowns in China and its impacts across the rest of the Asia-Pacific region.

Financials

Ingevity ended the quarter with cash and cash equivalents of $131.3 million, down around 44% year over year. Long-term debt was $1,176.2 million, down roughly 7% year over year.

Operating cash flow was $90.5 million for the reported quarter, up around 38% year over year.

Outlook

The company reaffirmed its sales guidance for 2022 in the band of $1.525-$1.65 billion and adjusted EBITDA outlook in the range of $430-$470 million.

Price Performance

Shares of Ingevity have declined 14.6% in a year against a 18.4% decline of the industry.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

Zacks Rank & Key Picks

Ingevity currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks worth considering in the basic materials space include Cabot Corporation CBT, Sociedad Quimica y Minera de Chile S.A. SQM and Albemarle Corporation ALB.

Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 34% over a year.

Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 57.8% upward in the past 60 days.

Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained roughly 82% in a year. The company sports a Zacks Rank #1.

Albemarle has a projected earnings growth rate of 231.4% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 3.6% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 3% in a year and currently carries a Zacks Rank #2.


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