NYSE$KWR

Quaker Chemical Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Quaker Houghton's Q4 2023 financial performance was announced, featuring a decrease in net sales but an increase in net income and non-GAAP earnings per share.

Quaker Houghton reported Q4 2023 net sales of $467.1 million and net income of $20.2 million, or $1.12 per diluted share. Non-GAAP net income was $31.9 million, or $1.78 per diluted share. Adjusted EBITDA increased by 13% year-over-year to $77.0 million.

  • Net sales decreased by 4% compared to Q4 2022, primarily due to lower selling prices and product mix.
  • Net income increased significantly compared to a net loss in Q4 2022.
  • Adjusted EBITDA increased by 13% year-over-year, driven by improved gross margins.
  • The company's Board of Directors approved a new share repurchase program of up to $150 million.

Headline financials

Total Revenue

$467M

Previous: $485M-3.7%
EPS (adj)

$1.78

Previous: $1.39+28.1%
Adjusted EBITDA

$77M

No prior period
Adjusted EBITDA Margin

16.5%

No prior period
Non-GAAP Operating Income

$50.9M

No prior period
Non-GAAP Operating Margin

10.9%

No prior period
Capital Expenditures

-$13M

Previous: $8.31M-256.5%
Net Income

$20.2M

Previous: -$76M+126.6%
Operating Income

$48.3M

Previous: -$53.6M+190.0%
Gross Profit

$171M

Previous: $156M+9.5%
Stock-Based Comp

$3.42M

Previous: $3.03M+12.7%

Revenue & EPS history

Quaker Chemical · Revenue · Quarterly

$467M

Q4 2023-3.7%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Quaker Houghton expects current market conditions to persist through the first half of 2024 and anticipates benefiting from ongoing actions to deliver another year of earnings growth.

Tailwinds

  • Progress in advancing enterprise strategy.
  • Earning new business with valued customers.
  • Positioning the company to deliver long-term profitable growth.
  • Strong balance sheet and cash generation capabilities.
  • Committed to capital allocation priorities aimed at enhancing shareholder value.

Headwinds

  • Current market conditions are expected to persist through the first half of 2024.
  • Softer market conditions have persisted throughout the year.
  • Direct and indirect impacts of the UAW strike.
  • Customer order patterns.
  • Decline in selling price and product mix.

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 Q4 2023

Historical avgQ4 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%

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