NYSE$NEU

NewMarket Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

NewMarket's financial performance improved in Q2 2023 with increased net income and earnings per share, driven by higher selling prices in the petroleum additives segment.

NewMarket Corporation reported a strong second quarter in 2023, with net income increasing to $99.6 million and earnings per share rising to $10.36. The petroleum additives segment saw a boost in operating profit due to increased selling prices, despite lower shipments.

  • Net income for Q2 2023 increased to $99.6 million, up from $66.5 million in Q2 2022.
  • Earnings per share for Q2 2023 rose to $10.36, compared to $6.54 per share in the same period last year.
  • Petroleum additives operating profit for Q2 2023 increased to $132.1 million from $91.2 million in Q2 2022, driven by higher selling prices.
  • The company's Net Debt to EBITDA ratio improved to 1.4 as of June 30, 2023, down from 2.0 at the end of 2022.

Headline financials

Total Revenue

$685M

Previous: $724M-5.3%
EPS (adj)

$10.36

Previous: $6.54+58.4%
Net Debt to EBITDA

1.4

No prior period
Capital Expenditures

-$26M

Previous: -$27.8M+6.5%
Free Cash Flow

$73.6M

Previous: $38.7M+90.4%
Net Income

$99.6M

Previous: $66.5M+49.9%
Operating Income

$124M

Previous: $83.6M+48.6%
Gross Profit

$196M

Previous: $157M+24.2%
Cash & Equivalents

$131M

Previous: $79.5M+64.7%
Total Assets

$2.37B

Previous: $2.33B+1.5%

Revenue & EPS history

NewMarket · Revenue · Quarterly

$685M

Q2 2023-5.3%vs Q2 2022

Revenue by segment

NewMarket · $685M total across 2 segments · Q2 2023

  • Petroleum Additives
    $684M-5.1%
  • All Other
    $1.16M

Forward guidance

NewMarket did not provide specific forward guidance in this earnings report. The report focuses on the results of the second quarter and first half of 2023 and emphasizes the company's long-term strategies and priorities.

Tailwinds

  • Focus on long-term value for shareholders and customers.
  • Commitment to a safety-first culture.
  • Customer-focused solutions.
  • Technology-driven product offerings.
  • World-class supply chain capability.

Headwinds

  • Effects of customer destocking.
  • Global economic weakness.
  • Higher operating costs due to the ongoing inflationary environment.
  • Challenges due to higher operating costs.
  • Ongoing inflationary environment.

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 2023

Historical avgQ2 2023

-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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