NYSE$ASH

Ashland Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Ashland's financial results for Q2 2023 were reported, with sales consistent with the prior-year quarter. The company updated its fiscal year 2023 financial outlook and announced the completion of a $200 million share repurchase.

Ashland reported sales of $603 million, consistent with the prior-year quarter. Net income was $91 million, and income from continuing operations was $92 million. The company updated its financial outlook for fiscal year 2023, expecting sales in the range of $2.3 billion to $2.4 billion and Adjusted EBITDA in the range of $580 million to $610 million.

  • Sales of $603 million were consistent with the prior-year quarter.
  • Net income was $91 million, or $1.67 per diluted share.
  • Income from continuing operations was $92 million, or $1.68 per diluted share.
  • Adjusted EBITDA was $145 million, down 11 percent from the prior-year quarter.

Headline financials

Total Revenue

$603M

Previous: $604M-0.2%
EPS (adj)

$1.43

Previous: $1.50-4.7%
Capital Expenditures

-$58M

Previous: -$37M-56.8%
Free Cash Flow

$33M

Previous: $749M-95.6%
Net Income

$91M

Previous: $786M-88.4%
Operating Income

$83M

Previous: $93M-10.8%
Gross Profit

$197M

Previous: $220M-10.5%
Cash & Equivalents

$399M

Previous: $964M-58.6%
Total Assets

$6.18B

Previous: $6.78B-8.8%
Stock-Based Comp

$5M

Previous: $5M+0.0%

Revenue & EPS history

Ashland · Revenue · Quarterly

$603M

Q2 2023-0.2%vs Q2 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Ashland · $619M total across 4 segments · Q2 2023

  • Life Sciences
    $240M+17.6%
  • Personal Care
    $167M-2.9%
  • Specialty Additives
    $161M-11.5%
  • Intermediates
    $51M-22.7%

Forward guidance

Ashland updated its financial outlook for fiscal year 2023, expecting sales in the range of $2.3 billion to $2.4 billion and Adjusted EBITDA in the range of $580 million to $610 million, reflecting weaker global demand dynamics and inventory-control actions.

Tailwinds

  • Demand for pharmaceutical products is expected to remain strong through the second half of the fiscal year.
  • Pricing and mix-improvement actions position the company well to cover current cost inflation.
  • The company remains confident about the future.
  • Customers remain resilient.
  • Inventory level was consistent with the level at the close of the December quarter.

Headwinds

  • Customer de-stocking is continuing.
  • Weaker-than-expected results over the past month and in certain end markets have created greater uncertainty regarding the de-stocking dynamics.
  • Inventory destocking creates more uncertainty for Personal Care and Specialty Additives end markets.
  • There are increased concerns of further global economic deceleration and the increasing cost of capital.
  • Inventory-control actions are expected to negatively impact Adjusted EBITDA in the second half of the fiscal year by approximately $20 million.

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 2023

Historical avgQ2 2023

-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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