NASDAQ$IOSP

Innospec Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Innospec's financial performance improved in Q2 2021, marked by revenue growth, increased profitability, and strategic advancements across its business segments.

Innospec Inc. reported a strong second quarter in 2021, with a 45% increase in total revenues to $354.5 million compared to the previous year. Net income reached $22.4 million, a significant turnaround from a $39.7 million loss in the same period last year. Adjusted non-GAAP EPS was $1.30, compared to an adjusted loss per share of $0.18 a year ago.

  • Total revenues increased by 45% year-over-year, reaching $354.5 million.
  • Net income was $22.4 million, a significant improvement from a $39.7 million loss in the same quarter last year.
  • Adjusted non-GAAP EPS was $1.30, compared to an adjusted loss per share of $0.18 a year ago.
  • Performance Chemicals achieved record quarterly sales with operating income up 47%.

Headline financials

Total Revenue

$355M

Previous: $245M+44.8%
EPS (adj)

$1.30

Previous: -$0.18+822.2%
Adjusted EBITDA

$50.6M

No prior period
Capital Expenditures

-$19.5M

Previous: -$14.6M-33.6%
Free Cash Flow

$2.9M

Previous: -$54.3M+105.3%
Net Income

$22.4M

Previous: -$39.7M+156.4%
Operating Income

$37M

Previous: -$53.4M+169.3%
Gross Profit

$108M

Previous: $59.1M+83.2%
Cash & Equivalents

$94.4M

Previous: $58.2M+62.2%
Total Assets

$1.46B

Previous: $1.34B+9.2%
Stock-Based Comp

$1.3M

Previous: $1.6M-18.8%

Revenue & EPS history

Innospec · Revenue · Quarterly

$355M

Q2 2021+44.8%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Innospec · $226M total across 2 segments · Q2 2021

  • Fuel Specialties
    $143M+33.2%
  • Oilfield Services
    $83.2M+99.0%

Forward guidance

Innospec anticipates continued momentum across all its businesses in the second half of 2021, barring any reinstatement of material economic restrictions due to the recent surge in global cases. The company expects that jet aviation fuel demand will be supportive of sales and margins during the coming year as economies re-open and travel increases.

Tailwinds

  • Performance Chemicals' operating income is expected to continue its double-digit growth.
  • Fuel Specialties anticipates that jet aviation fuel demand will be supportive of sales and margins.
  • Oilfield Services is focused on actions to drive higher incremental margins.
  • Strong balance sheet to support organic growth investments.
  • Strategic acquisition opportunities and continuing the record of returning value to shareholders.

Headwinds

  • Potential reinstatement of material economic restrictions due to the recent surge in global cases.
  • Demand gaps remain versus 2019 levels.
  • Cost inflation and supply chain constraints remain at above average levels.
  • Unspecified risks, uncertainties and assumptions, including the effects of the COVID-19 pandemic.
  • The effective tax rate for the quarter was 44.1 percent compared to 26.2 percent last year primarily due to the enacted change in the U.K. tax rate impacting deferred tax.

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 Q2 2021

Historical avgQ2 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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