Overview
Innospec Q3 sales slightly beat analyst expectations, reaching $441.9 mln
Adjusted EPS for Q3 missed analyst expectations at $1.12
Company increased semi-annual dividend by 10% and repurchased $10.7 mln in shares
Outlook
Innospec expects sequential operating income growth in Performance Chemicals and Oilfield Services
Innospec does not assume resumption of Mexican sales in its outlook
Result Drivers
FUEL SPECIALTIES - Strong operating income growth and margin expansion offset weaker results in other segments
PERFORMANCE CHEMICALS - Sales grew but gross margins declined due to higher costs and weaker product mix
OILFIELD SERVICES - Operating income declined due to lower Middle East activity and customer timing issues
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $441.90 mln | $439.63 mln (3 Analysts) |
Q3 Adjusted EPS | Miss | $1.12 | $1.18 (3 Analysts) |
Q3 EPS | $0.52 | ||
Q3 Net Income | $12.90 mln | ||
Q3 Gross Profit | $116.70 mln | ||
Q3 Operating Income | $5.90 mln | ||
Q3 Pretax Profit | $11.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for Innospec Inc is $107.50, about 31.5% above its November 3 closing price of $73.65
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nGNX4NvMzy
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)