NASDAQ$IOSP

Innospec Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Innospec reported a decrease in revenue but an increase in net income compared to the same quarter last year, with strong performance in Performance Chemicals and Oilfield Services.

Innospec's Q3 2023 results showed a revenue decrease of 10% to $464.1 million, but net income increased slightly to $39.2 million, with GAAP EPS at $1.57 and adjusted non-GAAP EPS at $1.59. The company generated $58.1 million in cash from operations and closed the quarter with $207.2 million in net cash.

  • Performance Chemicals showed strong sequential improvement.
  • Oilfield Services continued to deliver excellent results.
  • Fuel Specialties maintained consistent performance.
  • Cash from operations was $58.1 million, improving net cash to $207.2 million.

Headline financials

Total Revenue

$464M

Previous: $513M-9.5%
EPS (adj)

$1.59

Previous: $1.74-8.6%
Cash from Operations

$58.1M

Previous: $39.8M+46.0%
Capital Expenditures

-$45.2M

Previous: -$27.1M-66.8%
Free Cash Flow

-$6M

Previous: $11.6M-151.7%
Net Income

$39.2M

Previous: $38.7M+1.3%
Operating Income

$41.9M

Previous: $50.1M-16.4%
Gross Profit

$137M

Previous: $156M-12.1%
Cash & Equivalents

$207M

Previous: $101M+106.2%
Total Assets

$1.62B

Previous: $1.67B-3.0%
R&D Expense

$11.6M

No prior period
Stock-Based Comp

$2M

Previous: $1.5M+33.3%

Revenue & EPS history

Innospec · Revenue · Quarterly

$464M

Q3 2023-9.5%vs Q3 2022
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

Innospec anticipates similar results in Oilfield Services for the fourth quarter as in the third quarter, expecting 2023 to remain on track for significant full year growth and margin improvement.

Tailwinds

  • New contracts in Performance Chemicals driving sequential operating income growth.
  • Destocking pressure in Performance Chemicals believed to have peaked.
  • Potential for further sequential growth and margin improvement in Performance Chemicals in Q4.
  • Expect sequential margin improvement and operating income growth in Fuel Specialties.
  • Oilfield Services anticipates similar results to this quarter.

Headwinds

  • Economic uncertainty.
  • Continued destocking.
  • End-market headwinds.
  • Gross margins in Fuel Specialties slightly below target.
  • Moderation in production chemicals activity in Oilfield Services.

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 Q3 2023

Historical avgQ3 2023

+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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