NYSE$NEU

NewMarket Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported fourth quarter and full year results for 2021.

NewMarket Corporation's net income for the fourth quarter of 2021 was $17.2 million, or $1.65 per share, compared to $66.9 million, or $6.12 per share, for the fourth quarter of 2020. Sales for the petroleum additives segment were $573.4 million, up from $525.2 million in the fourth quarter of 2020.

  • Net income for the fourth quarter of 2021 was $17.2 million, or $1.65 per share.
  • Sales for the petroleum additives segment for the fourth quarter of 2021 were $573.4 million, up from $525.2 million in the fourth quarter of 2020.
  • Shipments decreased 1.6% between periods, with decreases in both lubricant additives and fuel additives shipments.
  • Petroleum additives operating profit for the fourth quarter of 2021 was $40.7 million, compared to $84.3 million for the same period last year, mainly due to higher raw material and operating costs, partially offset by increased selling prices.

Headline financials

Total Revenue

$577M

Previous: $528M+9.2%
EPS (adj)

$1.65

Previous: $6.12-73.0%
Capital Expenditures

$14.9M

Previous: $33.2M-55.1%
Free Cash Flow

$5.41M

Previous: $34.7M-84.4%
Net Income

$17.2M

Previous: $66.9M-74.3%
Operating Income

$35.4M

Previous: $75.6M-53.1%
Gross Profit

$107M

Previous: $151M-29.2%
Cash & Equivalents

$83.3M

Previous: $125M-33.4%
Total Assets

$2.56B

Previous: $1.93B+32.3%

Revenue & EPS history

NewMarket · Revenue · Quarterly

$577M

Q4 2021+9.2%vs Q4 2020
Beat estimate in 2 of 5 quarters(40%)
ActualEstimate

Revenue by segment

NewMarket · $577M total across 2 segments · Q4 2021

  • Petroleum Additives
    $573M+9.2%
  • All Other
    $3.18M+23.8%

Forward guidance

As we look forward to 2022 and beyond, we expect continued strength in our petroleum additives sales and shipments. Our views toward the fundamentals of our industry remain unchanged with the petroleum additives market growing at 1% to 2% for the foreseeable future, and we expect to exceed that growth rate.

Tailwinds

  • Expect continued strength in petroleum additives sales and shipments.
  • Petroleum additives market growing at 1% to 2% for the foreseeable future, and we expect to exceed that growth rate.
  • Ongoing investments in supply capability.
  • Technology- driven initiatives.
  • Fundamentals of how we run our business will continue to be beneficial for all our stakeholders.

Headwinds

  • Margin recovery and cost control will be priorities throughout 2022 so that we will return to our historical profit margin range.
  • Working hard to resolve continuing supply chain issues to meet our customers’ growing needs.
  • Prolonged period of escalating raw material costs.
  • Significant increases in many elements of our operating costs such as utilities, logistics, insurance, and third-party manufacturing services.
  • Worldwide supply chain disruptions continue to negatively impact our business.

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 2021

Historical avgQ4 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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