NYSE$KWR

Quaker Chemical Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Quaker Houghton's Q1 2023 performance reflected record net sales and improved profitability.

Quaker Houghton announced record net sales of $500.1 million for Q1 2023, a 5% increase compared to Q1 2022. The company reported net income of $29.5 million, or $1.64 per diluted share, and non-GAAP earnings per diluted share of $1.89. Adjusted EBITDA increased by 30% to $78.8 million, driven by higher net sales and improved gross margins.

  • Achieved record net sales of $500.1 million in Q1 2023, up 5% year-over-year.
  • Reported Q1 2023 net income of $29.5 million, with earnings per diluted share at $1.64.
  • Delivered adjusted EBITDA of $78.8 million in Q1 2023, a 30% increase compared to the previous year.
  • Generated $37.8 million in operating cash flow during Q1 2023.

Headline financials

Total Revenue

$500M

Previous: $474M+5.5%
EPS (adj)

$1.89

Previous: $1.42+33.1%
Capital Expenditures

-$6.16M

Previous: -$8.85M+30.4%
Free Cash Flow

$23.4M

Previous: $11M+113.1%
Net Income

$29.5M

Previous: $19.8M+49.0%
Operating Income

$49.9M

Previous: $29.4M+69.8%
Gross Profit

$173M

Previous: $146M+18.7%
Cash & Equivalents

$190M

Previous: $162M+17.5%
Total Assets

$2.86B

Previous: $3B-4.6%
Stock-Based Comp

$3.53M

Previous: $2.46M+43.3%

Revenue & EPS history

Quaker Chemical · Revenue · Quarterly

$500M

Q1 2023+5.5%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company is encouraged by its Q1 results despite complexities and uncertainties in the current operating environment, which are likely to persist through 2023. They will continue to prioritize investments in strategic initiatives to increase customer solutions, lead in sustainability, and enhance their differentiated customer intimate model.

Tailwinds

  • Continued execution on key financial and operational priorities
  • Commitment to strengthening our business to continue to deliver profitable growth ahead of the market.
  • Prioritize investments in strategic initiatives to increase customer solutions
  • Lead in sustainability
  • Enhance differentiated customer intimate model

Headwinds

  • Complexities and uncertainties in the current operating environment are likely to persist
  • Softer market conditions, especially in Asia/Pacific and EMEA
  • Impact of the war in Ukraine
  • Inflationary pressures on the business
  • Potential for significant increases in raw material costs

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 2023

Historical avgQ1 2023

+1.5%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+0.4%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+20.6%

Q2 2022

Best reaction

-10.0%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%+5.1%+7.4%
Q4 2025+1.1%-13.5%-25.8%
Q3 2025+5.5%+7.1%+9.6%
Q1 2025-2.6%-5.8%+2.3%
Q4 2024+2.6%-1.2%-7.8%
Q3 2024+4.2%+3.9%+2.0%
Q2 2024-6.5%-8.0%-3.3%
Q1 2024-1.0%-0.2%-3.3%
Q4 2023+0.5%-0.2%+4.1%
Q3 2023+13.0%+14.6%+28.9%
Q2 2023-5.3%-9.1%-11.4%
Q1 2023+11.3%+11.5%+7.8%
Q4 2022+0.6%+0.5%-5.0%
Q3 2022+6.4%+19.1%+25.1%
Q2 2022+20.6%+21.3%+8.7%
Q1 2022-2.8%-13.4%-5.1%
Q4 2021-3.4%-10.9%-4.2%
Q3 2021+3.6%+3.9%-12.3%
Q2 2021-1.9%+2.8%+4.3%
Q1 2021-0.7%-1.6%-1.5%
Q4 2020-4.2%-5.3%-20.1%
Q3 2020+8.9%+22.6%+24.2%
Q2 2020-1.8%+1.5%-2.6%
Q1 2020+7.6%+3.8%+21.8%
Q4 2019+1.1%+0.1%-28.9%
Q3 2019-4.2%-7.6%-0.6%
Q2 2019-10.0%-10.5%-15.2%
Q1 2019-3.3%-6.6%-18.6%
Q4 2018-0.5%-3.5%-4.6%
Q3 2018+13.3%+13.7%+14.6%
Q2 2018+10.0%+3.2%+10.0%
Q1 2018-2.0%-2.4%+3.3%
Q4 2017+1.1%-0.7%-2.1%
Q3 2017+4.8%+3.9%+8.1%
Q2 2017-3.9%-5.4%-8.2%
Q1 2017-0.5%+0.0%-3.6%
Q4 2016+2.9%+0.8%-2.4%
Q3 2016+1.9%+2.3%+20.0%
Q2 2016-0.1%+0.1%+1.1%
Q1 2016-1.4%
Q4 2015+6.1%
Q3 2015+5.1%
Q2 2015+16.0%
Q1 2015-5.5%
Q4 2014-7.0%
Q3 2014+8.7%
Q2 2014-0.3%
Q1 2014-2.7%
Q4 2013+6.8%
Q3 2013-3.1%
Q2 2013+1.7%
Q1 2013+8.6%
Q4 2012+1.9%
Q3 2012+11.6%
Q2 2012+2.8%
Q1 2011-1.6%
Q1 2012+0.2%
Q4 2009-1.6%
Q4 2011-1.6%
Q3 2010+3.5%
Q3 2011+3.5%
Q4 2010-4.3%
Q2 2010-4.3%
Q2 2011-4.3%
Q1 2010-6.6%

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