NYSE$KWR

Quaker Chemical Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Quaker Houghton reported strong Q1 2024 results with earnings growth and solid cash flow generation.

Quaker Houghton announced its first quarter 2024 results with net sales of $469.8 million, net income of $35.2 million, and EPS of $1.95. The company's adjusted EBITDA increased by 6% compared to the prior year, driven by improved gross margins. Despite a decline in sales volumes and selling price/product mix, the company remains confident in delivering volume and earnings growth in 2024.

  • Q1 2024 net sales reached $469.8 million, with a net income of $35.2 million and earnings per diluted share of $1.95.
  • Non-GAAP net income for Q1 2024 was $37.7 million, resulting in non-GAAP earnings per diluted share of $2.09.
  • Adjusted EBITDA for Q1 2024 increased by 6% to $83.3 million, compared to $78.8 million in Q1 2023.
  • Gross margins improved by 400 basis points compared to the prior year, marking the 7th consecutive quarterly year-over-year increase.

Headline financials

Total Revenue

$470M

Previous: $500M-6.1%
EPS

$1.95

Previous: $1.89+3.2%
Adjusted EBITDA

$83.3M

No prior period
Adjusted EBITDA Margin

17.7%

No prior period
Non-GAAP Operating Income

$59.2M

No prior period
Non-GAAP Operating Margin

12.6%

No prior period
Capital Expenditures

-$4.46M

Previous: -$6.16M+27.6%
Free Cash Flow

$30.8M

Previous: $23.4M+31.6%
Net Income

$35.2M

Previous: $29.5M+19.3%
Operating Income

$55.5M

Previous: $49.9M+11.2%
Gross Profit

$182M

Previous: $173M+4.7%
Cash & Equivalents

$196M

Previous: $190M+3.1%
Total Assets

$2.71B

Previous: $2.86B-5.0%
Stock-Based Comp

$3.88M

Previous: $3.53M+10.1%

Revenue & EPS history

Quaker Chemical · Revenue · Quarterly

$470M

Q1 2024-6.1%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Quaker Houghton is well positioned and committed to delivering volume and earnings growth in 2024. The investments are expected to enhance the team’s ability to outperform end markets, and the strong balance sheet and cash flow generation capabilities provide opportunities to accelerate profitable growth initiatives and create long-term shareholder value.

Tailwinds

  • The company is well-positioned to deliver volume and earnings growth in 2024.
  • Investments are expected to enhance the team’s ability to outperform end markets.
  • Strong balance sheet and cash flow generation capabilities.
  • Opportunities to accelerate profitable growth initiatives.
  • Committed to creating long-term shareholder value.

Headwinds

  • The global macroeconomic environment remains dynamic.
  • Potential effects of the conflicts in Ukraine and the Middle East.
  • Inflation and global supply chain constraints on the Company’s business, results of operations, and financial condition.
  • Expectations about future demand and raw material costs.
  • Impact of increased raw material costs and pricing initiatives.

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 2024

Historical avgQ1 2024

+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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