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Ingevity's (NGVT) Earnings and Revenues Miss Estimates in Q4

Ingevity Corporation NGVT recorded a profit of 41 cents per share in the fourth quarter of 2022 compared with 74 cents in the prior-year quarter.

Adjusted earnings in the reported quarter were 57 cents per share, down 27% year over year. The figure missed the Zacks Consensus Estimate of 90 cents.

The company’s revenues rose around 14% year over year to $383.6 million in the quarter, which lagged the Zacks Consensus Estimate of $385.1 million. The top line was driven by price increases across NGVT’s businesses to mitigate the impact of input cost inflation. The increase in prices was partly offset by lower volumes resulting from consumer destocking.

Ingevity Corporation Price, Consensus and EPS Surprise

Ingevity Corporation price-consensus-eps-surprise-chart | Ingevity Corporation Quote

Segment Highlights

The Performance Chemicals division generated revenues of $250.8 million in the reported quarter, rising around 23% year over year, primarily driven by price increases across all product lines and a shift toward high-value specialty products. Sales rose about 41% in Engineered Polymers while sales in Industrial Specialties went up roughly 12%.

Revenues in the Performance Materials unit remained flat year over year at $132.8 million, primarily due to lower sales resulting from the outbreak of COVID in China. Unfavorable currency movements also contributed to the same.

FY22 Results

Earnings, as adjusted, in full-year 2022 were $6.01 per share compared with $5.23 recorded a year ago. Net sales climbed 19.9% to $1,668.3 million.

Financials

Ingevity ended the quarter with cash and cash equivalents of $76.7 million, down around 72% year over year. Long-term debt was $1,472.5 million, up 17.8%.

Operating cash flow was $313.1 million in 2022. Free cash flow was $170.6 million in the year.

The company repurchased shares worth $6 million in the reported quarter.

Outlook

The company sees its sales for 2023 to the band of $1.9-$2.1 billion and adjusted EBITDA in the range of $495-$515 million.

Price Performance

Shares of Ingevity have gained 22.9% in a year against an 11% decline of the industry.

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Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Ingevity currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks to consider in the basic materials space are ATI Inc. ATI, Cal-Maine Foods, Inc. CALM and Nucor Corporation NUE. All three stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

ATI’s shares have gained 53.4% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 1.9% upward in the past 60 days. The company has an earnings growth rate of 9% for the current year.

ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.

Cal-Maine’s shares have gained 27.5% in the past year. The company has an earnings growth rate of 515.8% for the current year. The Zacks Consensus Estimate for CALM’s current-year earnings has been revised 36.4% upward in the past 60 days.

CALM topped Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 15.3% on average.

Nucor’s shares have gained 21.3% in the past year. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 13.3% upward in the past 60 days.

Nucor topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average.










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Cal-Maine Foods, Inc. (CALM) : Free Stock Analysis Report

Ingevity Corporation (NGVT) : Free Stock Analysis Report

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Zacks Investment Research