Stock Monitor: H.B. Fuller Post Earnings Reporting
LONDON, UK / ACCESSWIRE / July 10, 2018 / If you want access to our free earnings report on KMG Chemicals, Inc. (NYSE: KMG) ("KMG"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=KMG. KMG Chemicals reported its third quarter fiscal 2018 operating and financial results on June 11, 2018. The chemical maker outperformed top- and bottom-line expectations. Additionally, the Company raised its sales and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the fiscal third quarter ended April 30, 2018, KMG's sales soared 45% to a record $118.6 million compared to $81.6 million in Q3 FY17. The Company's reported numbers beat analysts' estimates of $113.0 million.
During Q3 FY18, KMG's adjusted EBITDA was a record $31.5 million, up 125% from $14.0 million in Q3 FY17.
For Q3 FY18, KMG reported net income of $15.6 million, or $0.98 per diluted share, compared to earnings of $6.07 million, or $0.49 per diluted share, in Q3 FY17. The Company's adjusted earnings was a record $1.10 per diluted share compared to $0.53 per share reported in the year earlier quarter, and ahead of Wall Street's estimates of $0.84 per share.
During Q3 FY18, the electronic chemicals segment's sales jumped 10% on a y-o-y basis to a record $74.7 million, benefiting from product volume growth in each of its major geographic regions. Despite higher freight costs, the segment’s reported quarter operating income surged 28% to $10.9 million on a y-o-y basis, aided by increased product volume, operating efficiencies, and a favorable product mix.
In Q3 FY18, electronic chemicals segment's operating margin improved to 14.6% compared to 12.5% in the prior year's corresponding period, and adjusted EBITDA advanced 19.7% to $13.7 million versus $11.5 million in Q3 FY17.
KMG's performance materials segment also generated record results with the reported quarter sales more than tripling on a y-o-y basis to $44.0 million versus $13.5 million in Q3 FY17. The segment's sales growth reflected the contribution from Flowchem as well as product volume growth in both industrial lubricants and wood treating chemicals.
For Q3 FY18, Performance materials segment's operating income came in at $16.0 million compared to $4.2 million in Q3 FY17. The increase in operating income reflected the contribution from Flowchem as well as product volume growth in both industrial lubricants and wood treating chemicals. The segment's operating margins were 36.5% in the reported quarter compared to 31.4% in the year earlier same quarter, due to the contribution from Flowchem as well as product volume growth in both industrial lubricants and wood treating chemicals.
During Q3 FY18, KMG's operating cash flow increased to a record $21.5 million compared to $7.9 million in Q3 FY17. Supported by strong financial performance and cash flow, the Company reduced its debt by $14 million in the reported quarter and, cumulatively, by $210 million through the first 9 months of fiscal 2018, which includes approximately $176 million in proceeds from KMG’s follow-on offering in October 2017.
Considering its strong financial performance through the first nine months of fiscal 2018 as well as its expectations for continued growth in Q4 FY18, KMG raised its fiscal 2018 sales forecast to be in the range of $455 million to $465 million, from the earlier guidance range of $445 million to $455 million, and also increased its FY18 adjusted EBITDA guidance to be in the band of $118 million to $120 million from the previously announced range of $114 million $118 million.
Stock Performance Snapshot
July 09, 2018 - At Monday's closing bell, KMG Chemicals' stock climbed 1.49%, ending the trading session at $77.44.
Volume traded for the day: 97.43 thousand shares.
Stock performance in the last month - up 12.12%; previous three-month period - up 29.59%; past twelve-month period - up 54.57%; and year-to-date - up 17.19%
After yesterday's close, KMG Chemicals' market cap was at $1.17 billion.
Price to Earnings (P/E) ratio was at 27.92.
The stock has a dividend yield of 0.15%.
The stock is part of the Basic Materials sector, categorized under the Specialty Chemicals industry. This sector was up 1.5% at the end of the session.
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