NYSE$ASH

Ashland Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Ashland's financial performance in Q2 2024 reflected sales decrease but net income increase, with adjusted EBITDA exceeding outlook range.

Ashland reported Q2 2024 sales of $575 million, a 5% decrease year-over-year, but net income increased to $120 million. Adjusted EBITDA was $126 million, exceeding the previously issued outlook range. The company is experiencing demand normalization within the Personal Care and Specialty Additives segments.

  • Sales decreased by 5% to $575 million compared to the prior-year quarter.
  • Net income increased to $120 million, or $2.39 per diluted share.
  • Adjusted EBITDA decreased by 13% to $126 million from $145 million in the prior-year quarter.
  • Cash flows from operating activities totaled $54 million, with ongoing free cash flow at $4 million.

Headline financials

Total Revenue

$575M

Previous: $603M-4.6%
EPS (adj)

$1.27

Previous: $1.43-11.2%
Capital Expenditures

-$70M

Previous: -$58M-20.7%
Free Cash Flow

$50M

Previous: $33M+51.5%
Net Income

$120M

Previous: $91M+31.9%
Operating Income

$21M

Previous: $83M-74.7%
Gross Profit

$161M

Previous: $197M-18.3%
Cash & Equivalents

$439M

Previous: $399M+10.0%
Total Assets

$5.95B

Previous: $6.18B-3.8%
Stock-Based Comp

$6M

Previous: $5M+20.0%

Revenue & EPS history

Ashland · Revenue · Quarterly

$575M

Q2 2024-4.6%vs Q2 2023
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Ashland · $530M total across 4 segments · Q4 2023

  • Life Sciences
    $203M-4.7%
  • Personal Care
    $146M-22.3%
  • Specialty Additives
    $144M-23.0%
  • Intermediates
    $37M-42.2%

Forward guidance

Ashland expects flat-to-low single digit end market demand growth this year and anticipates sequential margin improvement in the second half of the fiscal year. For the fiscal third quarter, the company expects sales in the range of $560 million to $580 million and adjusted EBITDA in the range of $138 million to $148 million. For the full fiscal year, Ashland now expects sales in the range of $2.150 billion to $2.225 billion and adjusted EBITDA in the range of $470 million to $500 million.

Tailwinds

  • Stable consumer demand
  • Lower inventories in the value chain
  • Order patterns indicating demand normalization
  • Positioned to increase production following disciplined inventory management
  • Expectation of profit momentum in the second half

Headwinds

  • Uncertainty regarding the pace of complete normalization
  • End market growth forecasted to be resilient but modest
  • Portfolio optimization actions impacting revenue
  • Softer pricing impacting revenue
  • Closure of production unit in Doel, Belgium reducing volume exposure

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 2024

Historical avgQ2 2024

-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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