Innospec (IOSP) Hits 52-Week High: What's Driving the Stock?
Innospec Inc.’s IOSP shares touched a fresh 52-week high of $128.6 on Mar 19 before closing at $123.55.
In the past year, the stock has gained 20.2% against the industry’s 5.6% fall in the same period.
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What’s Driving Innospec?
In the fourth quarter, IOSP reported adjusted earnings per share of $1.84, surpassing the Zacks Consensus Estimate of $1.59 and marking an increase from $1.20 in the prior-year quarter. Despite a 3% year-over-year decline in revenues to $494.7 million, Innospec exceeded the Zacks Consensus Estimate of $474 million. The Oilfield Services unit maintained its strong performance, while the Performance Chemicals and Fuel Specialties segments saw double-digit growth in operating income and expanded margins.
Innospec's recent acquisition of QGP Quimica Geral in Brazil marks a significant expansion of its global footprint, enhancing manufacturing capabilities and customer service in South America. QGP's specialized expertise in areas like Agriculture complements Innospec's existing portfolio, particularly in growing markets. This strategic move underscores Innospec's dedication to its M&A strategy, strengthening its Performance Chemicals segment and establishing a manufacturing stronghold in South America. Notably, the acquisition leaves Innospec with a debt-free balance sheet, paving the way for future M&A activities, shareholder returns and targeted organic growth investments.
Despite economic challenges, Innospec is optimistic about 2024, citing a robust pipeline of technology-driven organic opportunities and the integration of QGP as growth catalysts. Expansion in production capacity is expected to unlock further potential, with new contracts in personal care boosting the Performance Chemicals division. Technological advancements offer promising prospects for the Fuel Specialties unit.
Innospec consistently surpassed the Zacks Consensus Estimate in the last four quarters, with a trailing four-quarter average earnings surprise of 10.5%. The 2024 Zacks Consensus Estimate for earnings is pegged at $6.72, indicating a 10.3% increase from the previous year’s levels. Earnings are projected to rise by 9.8% in 2025. The Zacks Consensus Estimate for Innospec for 2024 has risen by approximately 1.8% in the past two months.
Innospec Inc. Price and Consensus
Innospec Inc. price-consensus-chart | Innospec Inc. Quote
Zacks Rank & Other Key Picks
Innospec currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, sporting a Zacks Rank #1 (Strong Buy), and Ecolab Inc. ECL and Hawkins, Inc. HWKN, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 68% in the past year.
Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 44.1% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a 26% year-over-year rise. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have surged 72.4% in the past year.
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Ecolab Inc. (ECL) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
Innospec Inc. (IOSP) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
