NYSE$ASH

Ashland Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Ashland's financial results reflected strategy execution, continued cost reduction, and improving industrial demand, but were negatively impacted by weather-related events and changing consumer habits.

Ashland reported sales of $598 million, a decrease of 2% compared to the prior-year period. Net income was $41 million, and adjusted EBITDA was $134 million, down from $142 million in the prior-year quarter. The company faced challenges from weather-related events in the U.S. Gulf Coast and changing consumer behavior due to the global pandemic.

  • Sales were $598 million, down 2% year-over-year.
  • Net income was $41 million, compared to a net loss of $582 million in the prior-year quarter.
  • Adjusted income from continuing operations was $64 million, compared to $69 million in the prior-year quarter.
  • Adjusted EBITDA was $134 million, down from $142 million in the prior-year quarter.

Headline financials

Total Revenue

$598M

Previous: $610M-2.0%
EPS (adj)

$1.05

Previous: $0.84+25.0%
Capital Expenditures

-$55M

Previous: -$66M+16.7%
Free Cash Flow

-$14M

Previous: -$648M+97.8%
Net Income

$41M

Previous: -$582M+107.0%
Operating Income

$71M

Previous: -$468M+115.2%
Gross Profit

$191M

Previous: $197M-3.0%
Cash & Equivalents

$373M

Previous: $353M+5.7%
Total Assets

$6.66B

Previous: $6.97B-4.4%
Stock-Based Comp

$4M

Previous: $4M+0.0%

Revenue & EPS history

Ashland · Revenue · Quarterly

$598M

Q2 2021-2%vs Q2 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Ashland · $517M total across 4 segments · Q2 2021

  • Life Sciences
    $185M+0.5%
  • Specialty Additives
    $158M+1.9%
  • Personal Care
    $137M-13.8%
  • Intermediates
    $37M+0.0%

Forward guidance

For the full fiscal year, Ashland expects to recover a portion of the lost cost absorption as the impacted plants work to make up for some of the lost production during the quarter. Overall, our expectations for Ashland’s full year results have not changed.

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

-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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