NYSE$ASH

Ashland Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Ashland's financial results for the second quarter of fiscal 2020 were reported, showing a decrease in sales but consistent adjusted income compared to the prior-year quarter.

Ashland reported a 9% decrease in sales to $610 million compared to the prior-year quarter. The net loss was $582 million, primarily due to a non-cash goodwill impairment charge. Adjusted income from continuing operations was $52 million, consistent with the prior-year quarter, and adjusted EBITDA was $142 million, also consistent with the prior year.

  • Sales were $610 million, a 9% decrease compared to the prior-year quarter.
  • Net loss amounted to $582 million, driven mainly by a goodwill impairment charge.
  • Adjusted income from continuing operations was $52 million, consistent with the prior-year quarter.
  • Adjusted EBITDA was $142 million, consistent with the prior-year quarter, as lower sales were offset by reduced operating expenses.

Headline financials

Total Revenue

$610M

Previous: $667M-8.5%
EPS (adj)

$0.84

Previous: $0.83+1.2%
Capital Expenditures

-$66M

Previous: -$70M+5.7%
Free Cash Flow

-$648M

Previous: $6M-10900.0%
Net Income

-$582M

Previous: $76M-865.8%
Operating Income

-$468M

Previous: $44M-1163.6%
Gross Profit

$197M

Previous: $198M-0.5%
Cash & Equivalents

$353M

Previous: $164M+115.2%
Total Assets

$6.97B

Previous: $8B-12.9%
Stock-Based Comp

$4M

Previous: $6M-33.3%

Revenue & EPS history

Ashland · Revenue · Quarterly

$610M

Q2 2020-8.5%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Ashland · $535M total across 4 segments · Q2 2020

  • Life Sciences
    $184M-6.1%
  • Personal Care
    $159M-13.1%
  • Specialty Additives
    $155M-8.3%
  • Intermediates
    $37M-15.9%

Forward guidance

Chairman and CEO Guillermo Novo will provide commentary on the outlook for Ashland during the conference call with securities analysts on Wednesday, May 6, 2020.

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 2020

Historical avgQ2 2020

-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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