NYSE$KWR

Quaker Chemical Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Quaker Houghton's financial performance significantly improved due to higher sales volumes, cost synergies, and market share gains.

Quaker Houghton reported a strong second quarter with a 52% increase in net sales and a significant improvement in net income compared to the prior year. The company benefited from higher sales volumes, cost synergies, and market share gains, but faced challenges from rising raw material costs and supply chain issues.

  • Net sales increased by 52% to $435.3 million compared to the prior year quarter.
  • Net income was $33.6 million, or $1.88 per diluted share, compared to a net loss of $7.7 million, or $0.43 per diluted share in the prior year quarter.
  • Non-GAAP earnings per diluted share was $1.82 compared to $0.21 in the prior year second quarter.
  • Adjusted EBITDA increased by 118% to $70.1 million compared to the second quarter of 2020.

Headline financials

Total Revenue

$435M

Previous: $286M+52.2%
EPS (adj)

$1.82

Previous: $0.21+766.7%
Sales Volume Change

40.0%

Previous: -27.0%+248.1%
Capital Expenditures

-$6.97M

Previous: -$7.53M+7.4%
Free Cash Flow

$26.6M

Previous: -$15.3M+274.2%
Net Income

$33.6M

Previous: -$7.74M+534.0%
Operating Income

$38.8M

Previous: $2.24M+1634.4%
Gross Profit

$154M

Previous: $97.4M+58.6%
Cash & Equivalents

$146M

Previous: $322M-54.8%
Total Assets

$2.94B

Previous: $2.87B+2.6%
Stock-Based Comp

$2.36M

Previous: $2.99M-21.3%

Revenue & EPS history

Quaker Chemical · Revenue · Quarterly

$435M

Q2 2021+52.2%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

The company expects raw material costs to continue to increase in the third quarter and is implementing additional price increases to help offset them. Gross margins for the third quarter are expected to be at or somewhat below the second quarter level before beginning to increase in the fourth quarter. Demand is expected to remain strong, but also to have some headwinds in automotive due to the semiconductor shortage and some seasonality trends. The company reaffirms its previous floor guidance on full year adjusted EBITDA.

Tailwinds

  • Sufficient price increases implemented during the year to return product margins to their targeted level as we exit the year.
  • Demand remains strong.
  • Completing integration cost synergies.
  • Continuing to take share in the marketplace.
  • Achieving positive impacts from recent acquisitions.

Headwinds

  • Raw material costs to continue to increase in the third quarter.
  • Gross margins for the third quarter are expected to be at or somewhat below our second quarter level.
  • Headwinds in automotive due to the semiconductor shortage.
  • Some seasonality trends which we typically experience in the second half of the year.
  • Unprecedented increases in raw material costs and supply chain issues.

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

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro