Ingevity's (NGVT) Earnings and Sales Top Estimates in Q3
Ingevity Corporation NGVT recorded profits of $75.4 million or $1.98 per share in third-quarter 2022 compared with a loss of $4.2 million or 11 cents in the year-ago quarter.
Excluding one-time items, adjusted earnings in the quarter were $2.09 per share, up from $1.62 a year ago. The figure topped the Zacks Consensus Estimate of $1.72.
The company’s revenues rose around 28% year over year to a record $482 million in the quarter, beating the Zacks Consensus Estimate of $428.4 million. The company benefited from strong demand and actions to increase prices, which helped it offset inflationary cost pressures.
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 $337.1 million in the reported quarter, rising around 30% year over year. Sales rose around 31% in Engineered Polymers while sales in Industrial Specialties went up roughly 35%.
Revenues in the Performance Materials unit increased around 23% year over year to $144.9 million. Sales of activated carbon products rose on higher global automotive production due to improved auto component supplies in all regions and China government automotive incentives.
Financials
Ingevity ended the quarter with cash and cash equivalents of $72.3 million, down around 73% year over year. Long-term debt was $1,153.2 million, down roughly 8% year over year.
Operating cash flow was $100.1 million for the reported quarter. Free cash flow was $64 million.
The company also repurchased shares worth $49.3 million in the reported quarter.
Outlook
The company raised its sales guidance for 2022 to the band of $1.65-$1.70 billion (up from $1.525-$1.65 billion expected earlier) and adjusted EBITDA outlook to the range of $460-$475 million (up from $430-$470 million expected earlier).
Price Performance
Shares of Ingevity have declined 9.6% in a year against a 33.6% decline of the industry.
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Zacks Rank & Key Picks
Ingevity currently carries a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks worth considering in the basic materials space include Sociedad Quimica y Minera de Chile S.A. SQM, Albemarle Corporation ALB and Commercial Metals Company CMC.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 49% in a year. The company currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 430.9% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% 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 4% in a year.
Commercial Metals currently carries a Zacks Rank #2. The Zacks Consensus Estimate for CMC's current-year earnings has been revised 3.8% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 19.7%, on average. CMC has gained around 33% in a year.
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