NYSE$NEU

NewMarket Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

NewMarket reported strong petroleum additives shipments but margins were compressed.

NewMarket Corporation reported a significant increase in net income for the second quarter of 2021, with earnings per share rising to $4.75 compared to $2.05 in the same period last year. Sales for the petroleum additives segment also increased, driven by higher shipments across all regions. However, operating margins were lower than historical averages due to rising raw material costs.

  • Net income for the second quarter of 2021 was $52.0 million, or $4.75 per share.
  • Sales for the petroleum additives segment were $586.6 million, up from $408.7 million in the second quarter of 2020.
  • Petroleum additives operating profit for the second quarter of 2021 was $74.2 million, compared to $33.1 million for the same period last year.
  • Shipments increased 41.1% between periods, driven by increases in all world regions in both lubricant additives and fuel additives.

Headline financials

Total Revenue

$591M

Previous: $411M+43.8%
EPS (adj)

$4.75

Previous: $2.05+131.7%
Capital Expenditures

-$44.4M

Previous: -$40.1M-10.7%
Free Cash Flow

$7.56M

Previous: -$17.7M+142.6%
Net Income

$52M

Previous: $22.3M+132.5%
Operating Income

$70.7M

Previous: $27.8M+154.9%
Gross Profit

$141M

Previous: $96.7M+45.8%
Cash & Equivalents

$154M

Previous: $102M+50.8%
Total Assets

$2.48B

Previous: $1.8B+37.8%

Revenue & EPS history

NewMarket · Revenue · Quarterly

$591M

Q2 2021+43.8%vs Q2 2020
Beat estimate in 2 of 7 quarters(29%)
ActualEstimate

Revenue by segment

NewMarket · $591M total across 2 segments · Q2 2021

  • Specialty Materials
    $587M
  • All Other
    $4.13M

Forward guidance

NewMarket is focused on recovering cost increases and prioritize margin improvement. The company believes the fundamentals of their business will continue to be beneficial for all stakeholders.

Tailwinds

  • Satisfying customer needs
  • Generating solid operating results
  • Promoting the greatest long-term value for shareholders
  • Customer-focused solutions
  • Technology-driven product offerings

Headwinds

  • Downward pressure on operating margins due mainly to the steady increase in raw material costs throughout the year.
  • Experiencing the lag between when price increases go into effect and when margins start to improve.
  • Availability of raw materials and distribution systems
  • Disruptions at production facilities, including single-sourced facilities
  • Hazards common to chemical businesses

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

-0.2%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+2.1%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+14.5%

Q3 2012

Best reaction

-14.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.2%+6.3%+14.8%
Q4 2025-14.4%-14.0%-16.2%
Q3 2025+3.0%+4.9%+2.1%
Q1 2025+5.4%+4.0%+11.2%
Q4 2024+5.0%+6.5%+12.6%
Q3 2024+4.0%+3.4%+4.4%
Q2 2024+0.8%-2.0%-0.8%
Q1 2024-9.0%-8.8%-7.4%
Q4 2023+5.0%+3.1%+13.8%
Q3 2023+8.6%+6.5%+17.6%
Q2 2023+1.4%+2.4%+3.2%
Q1 2023+8.3%+9.6%+8.8%
Q4 2022+8.5%+6.7%+3.2%
Q3 2022-4.8%-2.1%+1.6%
Q2 2022-2.8%-3.4%-8.7%
Q1 2022+5.5%+7.4%+7.3%
Q4 2021-9.9%-11.2%-1.4%
Q3 2021-11.5%-9.3%-8.7%
Q2 2021+3.9%+5.3%+13.5%
Q1 2021-7.0%-6.5%-10.3%
Q4 2020-3.0%-3.3%-4.2%
Q3 2020+2.6%+5.5%+7.9%
Q2 2020-10.0%-11.4%-11.8%
Q1 2020+4.5%+8.6%+10.2%
Q4 2019-2.8%-3.2%-4.9%
Q3 2019+4.0%+4.2%+7.2%
Q2 2019+3.6%+3.6%+10.5%
Q1 2019-4.8%-3.1%-5.9%
Q4 2018+6.9%+7.1%+10.8%
Q3 2018-2.7%-0.9%+6.3%
Q2 2018-8.0%-7.2%-2.5%
Q1 2018+1.7%-4.1%-4.8%
Q4 2017+2.7%+1.9%+10.5%
Q3 2017-5.0%-7.0%-8.1%
Q2 2017-4.6%-5.2%-9.0%
Q1 2017+2.3%+1.0%+1.7%
Q4 2016-0.0%-0.5%+1.1%
Q3 2016-0.2%-0.0%+2.5%
Q2 2016+5.4%+2.7%+3.4%
Q1 2016-1.5%
Q4 2015-9.0%
Q3 2015-3.8%
Q2 2015-6.1%
Q1 2015+1.9%
Q4 2014+5.8%
Q3 2014-2.0%
Q2 2014+0.1%
Q1 2014-6.7%
Q4 2013+5.9%
Q3 2013-0.1%
Q2 2013+0.4%
Q1 2013-0.7%
Q4 2012-9.1%
Q3 2012+14.5%
Q2 2012-0.1%
Q1 2012+14.4%
Q4 2011-1.2%
Q4 2008-1.2%
Q3 2011+2.2%
Q2 2011-5.1%
Q1 2010+1.1%
Q1 2011+0.5%
Q4 2010-6.3%
Q3 2010-0.1%
Q3 2009-0.1%
Q4 2009-1.6%
Q2 2010-1.6%
Q2 2009-1.6%

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