NYSE$ASH

Ashland Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Ashland's financial results for the first quarter of fiscal year 2022 were reported, showing increased sales but a decrease in net income compared to the prior-year quarter.

Ashland reported sales of $512 million, a 9% increase from the prior-year quarter. Net income was $48 million, down from $56 million in the prior-year quarter. The company faced global logistics challenges and cost inflation, which impacted earnings.

  • Sales increased by 9% year-over-year, reaching $512 million.
  • Net income decreased to $48 million, compared to $56 million in the prior-year quarter.
  • Adjusted EBITDA increased to $106 million, up from $101 million in the prior-year quarter.
  • The company launched eleven new products, a 20% increase compared to the prior-year quarter.

Headline financials

Total Revenue

$512M

Previous: $552M-7.2%
EPS (adj)

$0.88

Previous: $0.94-6.4%
Capital Expenditures

-$15M

Previous: -$30M+50.0%
Free Cash Flow

$33M

Previous: $26M+26.9%
Net Income

$48M

Previous: $56M-14.3%
Operating Income

$42M

Previous: $41M+2.4%
Gross Profit

$161M

Previous: $178M-9.6%
Cash & Equivalents

$194M

Previous: $335M-42.1%
Total Assets

$6.55B

Previous: $6.74B-2.9%
Stock-Based Comp

$4M

Previous: $4M+0.0%

Revenue & EPS history

Ashland · Revenue · Quarterly

$512M

Q1 2022-7.2%vs Q1 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Ashland · $526M total across 4 segments · Q1 2022

  • Life Sciences
    $170M+0.0%
  • Specialty Additives
    $156M+6.1%
  • Personal Care
    $147M+16.7%
  • Intermediates
    $53M+60.6%

Forward guidance

For fiscal year 2022, the company continues to expect sales in the range of $2.25 billion to $2.35 billion and adjusted EBITDA in the range of $550 million to $570 million. Our most recent forecast projects full year Adjusted EBITDA below the midpoint of the range.

Tailwinds

  • Underlying demand is expected to remain strong.
  • Pricing actions are expected to cover currently-forecasted inflation.
  • Demonstrated resilience of portfolio against market conditions.
  • Proactive building of inventories in key regions to mitigate supply-chain and shipping challenges.
  • Focus on things that can be controlled.

Headwinds

  • Shipping challenges are expected to persist.
  • Potential headwinds are driven by external risks outside of the company's control.
  • Increased costs.
  • Additional supply-chain constraints.
  • Temporary government-mandated shutdown of our facility in Nanjing, China resulted in earnings for the quarter that were below our original expectations.

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 2022

Historical avgQ1 2022

-0.4%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+0.8%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+15.9%

Q1 2024

Best reaction

-10.2%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+8.4%+6.3%+17.7%
Q1 2026-0.8%+4.2%-6.8%
Q4 2025-1.0%-1.3%+15.5%
Q2 2025-9.9%-11.5%-9.0%
Q1 2025-9.8%-14.4%-14.5%
Q4 2024-5.0%-7.3%-11.2%
Q3 2024-3.2%-6.5%-7.4%
Q2 2024-2.6%-1.2%+2.7%
Q1 2024+15.9%+13.4%+15.9%
Q4 2023-4.8%+0.8%+7.3%
Q3 2023+0.1%+1.3%-6.9%
Q2 2023-10.2%-9.5%-15.0%
Q1 2023+1.5%-1.4%-3.8%
Q4 2022+7.9%+8.0%+11.9%
Q3 2022-2.5%-4.3%+1.5%
Q2 2022+4.7%+3.5%+4.3%
Q1 2022+1.2%-0.8%-5.9%
Q4 2021+1.4%+7.4%+5.3%
Q3 2021-3.9%-3.1%-2.3%
Q2 2021-7.0%-7.3%+1.2%
Q1 2021+1.3%+2.3%+3.0%
Q4 2020-2.4%+3.9%-2.5%
Q3 2020-2.5%-5.2%-5.1%
Q2 2020-0.1%+5.3%+20.8%
Q1 2020+1.1%-1.8%+0.8%
Q4 2019-3.8%-8.6%-3.8%
Q3 2019+0.0%-3.5%-8.7%
Q2 2019-5.4%-4.9%-5.0%
Q1 2019+2.7%+2.0%+1.8%
Q4 2018+9.0%+8.5%+2.6%
Q3 2018+2.5%+3.9%+2.6%
Q2 2018+7.7%+10.6%+17.4%
Q1 2018+0.3%+2.0%-2.2%
Q4 2017-3.6%-3.9%+2.5%
Q3 2017-2.4%-2.3%-4.5%
Q2 2017-1.4%-2.5%+7.6%
Q1 2017+2.1%+2.2%+4.6%
Q4 2016-4.1%-5.3%+1.3%
Q3 2016-6.4%-6.7%-4.3%
Q2 2016-0.7%
Q1 2016-1.9%
Q4 2015-0.1%
Q3 2015-3.2%
Q2 2015-1.4%
Q1 2015+1.3%
Q4 2014+2.9%
Q3 2014-5.1%
Q2 2014+4.5%
Q1 2014-1.0%
Q4 2013-5.8%
Q3 2013+0.4%
Q2 2013-0.1%
Q1 2013+6.9%
Q4 2012+0.4%
Q3 2012-0.4%
Q2 2012+1.5%
Q1 2012+1.3%
Q4 2011-4.8%
Q3 2011+4.0%
Q2 2011+0.8%
Q1 2010+3.1%
Q4 2010-1.2%
Q3 2010-5.7%
Q2 2010+2.8%

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