NASDAQ$BCPC

Balchem Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Balchem reported record fourth quarter sales and adjusted net earnings, leading to solid results for the full year 2019.

Balchem Corporation reported fourth quarter net sales of $166.5 million, GAAP EPS of $0.63, and adjusted EPS of $0.88. The company saw sales growth in three of its four segments and record adjusted net earnings.

  • Net sales reached $166.5 million, a 1.8% increase compared to the prior year quarter.
  • GAAP net earnings were $20.4 million, resulting in GAAP earnings per share of $0.63.
  • Adjusted net earnings increased by 12.9% to $28.4 million, with adjusted earnings per share of $0.88.
  • Cash flows from operations were $33.0 million, with free cash flow of $26.3 million.

Headline financials

Total Revenue

$644M

Previous: $644M+0.0%
EPS (adj)

$0.64

Previous: $0.63+1.6%
Adjusted EBITDA

$40M

Previous: $39.6M+1.0%
Capital Expenditures

$6.23M

Previous: $5.92M+5.3%
Free Cash Flow

$26.3M

Previous: $33.6M-21.8%
Net Income

$20.4M

Previous: $20.3M+0.2%
Operating Income

$23.6M

Previous: $27.3M-13.3%
Gross Profit

$54.3M

Previous: $51.3M+5.9%
Cash & Equivalents

$65.7M

Previous: $54.3M+21.0%
Total Assets

$1.16B

Previous: $981M+17.8%
Stock-Based Comp

$1.88M

Previous: $1.21M+55.9%

Revenue & EPS history

Balchem · Revenue · Quarterly

$644M

Q4 2019+0%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Balchem · $163M total across 3 segments · Q4 2019

  • Human Nutrition & Health
    $90.3M+3.4%
  • Animal Nutrition & Health
    $48.4M+2.8%
  • Specialty Products
    $24M+36.8%

Forward guidance

Balchem is positioned to continue to drive growth into the future, progressing organic growth initiatives and seeking value-creating acquisitions in 2020.

Tailwinds

  • Delivered record fourth quarter sales.
  • Achieved record adjusted net earnings.
  • Experienced sales growth in three of four segments.
  • Maintained strong cash conversion.
  • Well positioned to continue to drive growth into the future.

Headwinds

  • Significantly lower Industrial Products sales due to the oil and gas fracking market.
  • Manufacturing inefficiencies in Human Nutrition & Health segment.
  • Higher bad debt expense.
  • A non-cash restructuring charge in the Human Nutrition & Health segment.
  • Continued competitive pressures on volume and pricing in the European monogastric business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.0%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.9%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+25.0%

Q1 2014

Best reaction

-16.3%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.8%-7.0%-9.7%
Q4 2025-2.3%+2.6%-7.4%
Q3 2025+4.1%+3.9%+1.3%
Q1 2025-2.6%-1.5%+4.8%
Q4 2024+1.5%+7.0%-0.1%
Q3 2024+2.8%+1.6%+9.8%
Q2 2024+3.9%+1.5%-1.2%
Q1 2024-1.8%-3.0%-8.8%
Q4 2023+7.4%+5.0%+6.8%
Q3 2023-5.0%-4.1%+1.1%
Q2 2023+4.8%+5.0%+7.1%
Q1 2023+1.7%+0.5%+5.2%
Q4 2022-2.0%-0.2%-7.7%
Q3 2022-0.6%-0.5%+5.4%
Q2 2022-5.2%-6.6%+2.3%
Q1 2022+1.6%-0.9%-10.5%
Q4 2021+1.0%-0.7%+1.2%
Q3 2021-0.8%+2.3%+7.9%
Q2 2021-0.8%-2.5%+2.7%
Q1 2021-0.2%-0.1%+0.5%
Q4 2020+5.4%+6.4%+10.7%
Q3 2020-1.7%-0.5%+3.3%
Q2 2020+4.6%+4.7%+0.3%
Q1 2020-5.4%-3.9%-9.3%
Q4 2019-10.7%-13.3%-15.9%
Q3 2019+2.9%+1.2%-0.8%
Q2 2019-16.3%-15.9%-13.5%
Q1 2019+1.1%+4.0%+9.4%
Q4 2018+8.0%+12.4%+10.7%
Q3 2018-4.9%-4.9%-13.7%
Q2 2018+1.1%+1.3%+10.1%
Q1 2018-1.3%+2.2%+7.9%
Q4 2017+2.3%+5.9%+8.6%
Q3 2017+1.0%-0.7%+1.3%
Q2 2017-2.6%-3.9%-1.8%
Q1 2017-3.3%-5.3%-1.8%
Q4 2016+5.2%+2.2%-2.5%
Q3 2016-4.5%+0.8%+12.3%
Q2 2016+1.3%+2.0%+8.7%
Q1 2016+0.3%
Q4 2015-0.4%
Q3 2015-2.0%
Q2 2015+5.2%
Q1 2015-0.5%
Q4 2014-3.4%
Q3 2014+6.7%
Q2 2014+2.5%
Q1 2014+25.0%
Q4 2013+0.4%
Q3 2013-4.9%
Q2 2013+1.3%
Q1 2013-2.3%
Q4 2012+0.8%
Q3 2012-10.5%
Q2 2012+5.9%
Q1 2011+2.1%
Q4 2011+2.1%
Q1 2012+2.4%
Q1 2010-4.1%
Q4 2009-4.1%
Q3 2010-3.2%
Q3 2011-3.2%
Q2 2011+1.0%
Q4 2010+1.0%
Q2 2010+1.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro