NYSE$NEU

NewMarket Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

NewMarket's financial performance declined due to rising costs, despite strong petroleum additives shipments.

NewMarket Corporation reported a decrease in net income for the third quarter of 2021, with earnings per share also declining. The petroleum additives segment saw increased sales and shipments but faced pressure on operating profit due to higher raw material and conversion costs.

  • Net income for the third quarter was $52.0 million, or $4.80 per share, compared to $95.8 million, or $8.77 per share, for the third quarter of 2020.
  • Petroleum additives sales increased to $619.1 million, up from $510.3 million in the third quarter of 2020, with an 11.9% increase in shipments.
  • Operating profit for the petroleum additives segment decreased to $72.1 million, compared to $102.2 million for the same period last year, due to rising costs.
  • The company increased its quarterly dividend by 10.5% to $2.10 per share and repurchased 292,392 shares for $99.5 million during the quarter.

Headline financials

Total Revenue

$622M

Previous: $513M+21.3%
EPS (adj)

$4.80

Previous: $7.26-33.9%
Capital Expenditures

-$64M

Previous: -$60.1M-6.5%
Free Cash Flow

-$12M

Previous: $35.7M-133.6%
Net Income

$52M

Previous: $95.8M-45.7%
Operating Income

$63.1M

Previous: $98.8M-36.1%
Gross Profit

$138M

Previous: $167M-17.0%
Cash & Equivalents

$59.6M

Previous: $118M-49.4%
Total Assets

$2.44B

Previous: $1.88B+29.6%

Revenue & EPS history

NewMarket · Revenue · Quarterly

$622M

Q3 2021+21.3%vs Q3 2020
Beat estimate in 2 of 6 quarters(33%)
ActualEstimate

Revenue by segment

NewMarket · $622M total across 2 segments · Q3 2021

  • Petroleum Additives
    $619M+21.3%
  • All Other
    $3.14M+21.2%

Forward guidance

The company expects continued downward pressure on operating margins due to rising raw material costs, energy costs, transportation network issues, and other costs associated with global supply chain disruptions. Margin improvement will continue to be a priority.

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 Q3 2021

Historical avgQ3 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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