NASDAQ$IOSP

Innospec Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Innospec's first quarter results for 2024 were announced, showing a 23% increase in operating income driven by the Performance Chemicals segment.

Innospec reported a decrease in revenue by 2% to $500.2 million. Net income increased to $41.4 million, with GAAP EPS at $1.65 and adjusted non-GAAP EPS at $1.75. The company generated $80.6 million in cash from operations and closed the quarter with $270.1 million in net cash.

  • Performance Chemicals drove operating income growth, more than doubling over the prior year.
  • Fuel Specialties gross margins were within the target range of 32 to 35 percent.
  • Oilfield Services delivered operating income growth and margin expansion.
  • Net cash provided by operating activities was $80.6 million.

Headline financials

Total Revenue

$500M

Previous: $510M-1.8%
EPS

$1.65

Previous: $1.38+19.6%
Adjusted EBITDA

$64M

No prior period
Cash from Operations

$80.6M

Previous: $21.8M+269.7%
Capital Expenditures

-$10.7M

Previous: -$17.7M+39.5%
Free Cash Flow

$30.7M

Previous: $15.5M+98.1%
Net Income

$41.4M

Previous: $33.2M+24.7%
Operating Income

$50.5M

Previous: $41M+23.2%
Gross Profit

$156M

Previous: $148M+5.3%
R&D Expense

$11.8M

No prior period
Stock-Based Comp

$2.1M

Previous: $1.9M+10.5%

Revenue & EPS history

Innospec · Revenue · Quarterly

$500M

Q1 2024-1.8%vs Q1 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Innospec · $319M total across 2 segments · Q3 2023

  • Fuel Specialties
    $169M-5.3%
  • Oilfield Services
    $150M-14.3%

Forward guidance

The company expects continued growth and margin improvement driven by technology-based organic opportunities across the businesses. They anticipate further M&A, dividend growth, buybacks, and organic investment due to their strong cash position.

Tailwinds

  • Maintain improvement in 2024.
  • Recent acquisition of QGP Quimica Geral S.A. is performing in line with expectations and was immediately accretive.
  • Exciting and diverse set of geographic and end-market opportunities in both fuel and non-fuel applications.
  • Further sales growth and margin improvement in other oilfield segments.
  • Broad set of technology-based organic opportunities across the businesses which we expect will continue to advance driving further growth and margin improvement.

Headwinds

  • Customers remain disciplined in their order patterns.
  • Production chemicals activity to remain below previous quarters.
  • Revenues in Fuel Specialties were down 7 percent from $190.3 million in the first quarter of last year.
  • Gross margins of Oilfield Services decreased by 4.2 percentage points from the same quarter last year on a weaker sales mix.
  • Corporate costs for the quarter were $20.2 million, compared with $17.7 million a year ago.

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 2024

Historical avgQ1 2024

+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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