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Ingevity (NGVT) Earnings & Revenues Surpass Estimates in Q1

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·3 min read
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Ingevity Corporation NGVT reported profits (attributable to stockholders) of $45.3 million or $1.08 per share in first-quarter 2020, up 99.6% from $22.7 million or 54 cents per share a year ago.

Adjusted earnings per share for the reported quarter were $1.12, surpassing the Zacks Consensus Estimate of 84 cents per share.

The company’s revenues rose 4.1% year over year to $288.2 million in the quarter. Moreover, the top line surpassed the Zacks Consensus Estimate of $262 million.

Adjusted EBITDA rose 10.4% year over year to $92.2 million in the quarter.

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

Revenues from the Performance Chemicals division declined 0.4% year over year to $167.1 million in the quarter under review. Higher sales in pavement and oilfield technologies, and the addition of the Engineered Polymers business were offset by weakness in Industrial Specialties applications.

Revenues from the Performance Materials unit increased 11% to $121.1 million. Sales rose in China as automakers completed the implementation of the China 6 standard. Moreover, the top line was also supported by strong gains in sales of Ingevity’s base automotive activated carbon products and its honeycomb scrubber products, as automotive customers’ complete implementation of the U.S. and Canada emission standards.

Balance Sheet

Ingevity ended the quarter with cash and cash equivalents of $302.7 million, up 688.3% year over year. Long-term debt was $1,467.8 million, up 4.6% year over year.

Outlook

Ingevity expects sales for 2020 to be between $1.1 billion and $1.2 billion. It also anticipates adjusted EBITDA of $310-$350 million for the year.

Moreover, the company anticipates revenue decline of 25-30% year over year for the second quarter. Also, it expects a decline in adjusted EBITDA of 35-40% year over year for the second quarter.

Price Performance

Shares of Ingevity have lost 60.9% in the past year compared with the industry’s decline of 15.5%.

 

 

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Equinox Gold Corp. EQX, Franco-Nevada Corporation FNV and Kinross Gold Corporation KGC.

Equinox Gold currently sports a Zacks Rank #1 (Strong Buy) and has a projected earnings growth rate of 237.9% for 2020. The company’s shares have gained 47.4% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Franco-Nevada has a projected earnings growth rate of 22% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 90.9% in a year.

Kinross has a projected earnings growth rate of 52.9% for 2020. The company’s shares have surged 120.1% in a year. It currently has a Zacks Rank #2.

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