NASDAQ$IOSP

Innospec Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Innospec's first quarter 2021 financial results reflected record sales and operating income in Performance Chemicals, continued recovery in Fuel Specialties and Oilfield Services, and strong cash generation.

Innospec Inc. reported a decrease in total revenues to $339.6 million, a net income of $23.4 million, and an adjusted non-GAAP EPS of $1.06 for the first quarter ended March 31, 2021. The company saw record sales in Performance Chemicals and sequential growth in Fuel Specialties and Oilfield Services. They also increased their semi-annual dividend by 10 percent.

  • Performance Chemicals achieved record sales and operating income.
  • Fuel Specialties and Oilfield Services showed continued recovery.
  • Cash generation was strong, leading to an improved net cash position of $116.6 million.
  • The semi-annual dividend was increased by 10 percent to $0.57 per share.

Headline financials

Total Revenue

$340M

Previous: $372M-8.8%
EPS (adj)

$1.06

Previous: $1.42-25.4%
Cash from Operations

$22.7M

No prior period
Capital Expenditures

-$10.3M

Previous: -$7.8M-32.1%
Free Cash Flow

$13.1M

Previous: $25.3M-48.2%
Net Income

$23.4M

Previous: $33.1M-29.3%
Operating Income

$28.2M

Previous: $40.9M-31.1%
Gross Profit

$101M

Previous: $114M-11.5%
Cash & Equivalents

$117M

Previous: $68.1M+71.8%
Total Assets

$1.43B

Previous: $1.46B-2.0%
Stock-Based Comp

$1.6M

Previous: $1.2M+33.3%

Revenue & EPS history

Innospec · Revenue · Quarterly

$340M

Q1 2021-8.8%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Innospec · $214M total across 2 segments · Q1 2021

  • Fuel Specialties
    $139M-5.2%
  • Oilfield Services
    $74.4M-33.7%

Forward guidance

Innospec expects continued improvement in overall market conditions as the post-COVID-19 economic re-opening progresses. They are managing cost inflation through price action and collaboration with customers. In terms of capital allocation, they have begun to pull forward incremental organic growth capital expenditures to support existing demand in Performance Chemicals and have significant balance sheet capacity to pursue complementary acquisition opportunities for this business.

Tailwinds

  • Expects continued improvement in overall market conditions.
  • Well positioned for the recovery in global economic activity in 2021.
  • Managing cost inflation through price action.
  • Completed expansion in production capacity for proprietary drag reducing agents technology at Texas plant by Q3 2021.
  • Strong cash flow generation.

Headwinds

  • COVID-19 pandemic effects.
  • Economic restrictions and vaccination delays in Europe.
  • Strained global supply chain.
  • Port delays and regional shipping container shortages.
  • Widespread force majeure declarations in the global chemical industry.

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 Q1 2021

Historical avgQ1 2021

+1.5%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+0.5%

Avg return

30 days after

62%

40 / 65 earnings

Positive

+14.7%

Q3 2024

Best reaction

-8.5%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%-0.8%+1.0%
Q4 2025-0.0%-8.3%-23.5%
Q3 2025+2.4%+3.9%+3.8%
Q1 2025-3.2%-6.0%-7.8%
Q4 2024-7.0%-7.2%-12.6%
Q3 2024+14.7%+11.7%+7.6%
Q2 2024-8.5%-8.2%-6.6%
Q1 2024+4.9%+5.0%+0.9%
Q4 2023-0.5%+3.0%+1.5%
Q3 2023+0.7%+0.8%+9.8%
Q2 2023+0.5%+1.3%-2.3%
Q1 2023+0.6%-1.3%-0.1%
Q4 2022-5.6%-5.1%-14.0%
Q3 2022-1.1%+5.8%+6.8%
Q2 2022-4.2%-7.6%-12.1%
Q1 2022+4.4%+5.4%+10.6%
Q4 2021+8.1%+8.4%+3.5%
Q3 2021+2.2%+3.3%-7.6%
Q2 2021-2.5%+1.0%+4.4%
Q1 2021+1.6%+4.2%+3.5%
Q4 2020-2.4%-0.2%+4.8%
Q3 2020+2.4%+0.6%+23.4%
Q2 2020-0.2%+2.9%-4.1%
Q1 2020+2.3%+5.2%+16.5%
Q4 2019-0.2%-8.4%-37.7%
Q3 2019+9.2%+8.8%+8.9%
Q2 2019+0.8%+2.2%+0.9%
Q1 2019+0.4%-0.3%-2.5%
Q4 2018+5.8%+9.6%+12.3%
Q3 2018+9.9%+8.3%-2.1%
Q2 2018-3.3%-4.5%-2.0%
Q1 2018+2.8%+3.4%+9.9%
Q4 2017+0.8%+2.6%+4.5%
Q3 2017+9.7%+3.6%+10.2%
Q2 2017-4.7%-9.3%-13.3%
Q1 2017-0.8%-2.6%+3.8%
Q4 2016+5.7%+1.9%-9.8%
Q3 2016-6.7%-5.5%+10.2%
Q2 2016+6.6%+16.1%+17.1%
Q1 2016+0.1%
Q4 2015-7.9%
Q3 2015+4.1%
Q2 2015+4.3%
Q1 2015-0.1%
Q4 2014+3.7%
Q3 2014+8.0%
Q2 2014+2.3%
Q1 2014-1.4%
Q4 2013+5.4%
Q3 2013-2.6%
Q2 2013+0.4%
Q1 2013-3.6%
Q4 2012+0.2%
Q3 2012+4.9%
Q4 2011-3.0%
Q2 2012-4.6%
Q1 2011+7.5%
Q1 2012+8.5%
Q4 2009-2.5%
Q3 2010-2.5%
Q3 2011+7.4%
Q2 2011+4.4%
Q2 2010+4.4%
Q4 2010+4.4%
Q1 2010+7.8%

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