NYSE$NGVT
Ingevity Corporation · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Ingevity delivered results in line with special, one-time second quarter guidance driven by cost reduction actions and strong execution.
Ingevity's Q2 2020 net sales were $270.6 million, a 23.3% decrease compared to the prior year quarter. Net income was $20.2 million, a 64.4% decrease, with diluted earnings per share at $0.49. The company reaffirmed its fiscal year 2020 guidance for sales and adjusted EBITDA.
- Ingevity delivers results in line with special, one-time second quarter guidance driven by cost reduction actions and strong execution
- Company reaffirms fiscal year 2020 guidance of sales between $1.10 billion and $1.20 billion and adjusted EBITDA between $310 million and $350 million
- Cost reduction initiatives bolster second quarter profitability, and will save the company $35 million in 2020 and $12 million annually going forward
- Net sales of $270.6 million were down 23.3% versus the prior year quarter as a result of weakened demand, particularly in the automotive industry, driven by the economic impacts of COVID-19
Headline financials
Revenue & EPS history
Ingevity · Revenue · Quarterly
$271M
Revenue by segment
Ingevity · $271M total across 2 segments · Q2 2020
- Performance Chemicals$186M-18.9%68.8%
- Performance Materials$84.4M-31.4%31.2%
Forward guidance
Ingevity reaffirmed its fiscal year 2020 guidance of sales between $1.10 billion and $1.20 billion and adjusted EBITDA between $310 million and $350 million.
Tailwinds
- Company reaffirms fiscal year 2020 guidance of sales between $1.10 billion and $1.20 billion
- Company reaffirms fiscal year 2020 guidance of adjusted EBITDA between $310 million and $350 million
- Pavement Technologies applications were about even with the prior year as paving in North America continued largely unaffected.
- Sales to pavement customers in the Europe, Middle East and Africa region (EMEA) increased
- Ingevity’s activated carbon pellet sales in China in the second quarter were the second highest on record reflecting the strong demand rebound and the implementation of the China 6 standard, which is essentially completed.
Headwinds
- Net sales of $270.6 million were down 23.3% versus the prior year quarter as a result of weakened demand, particularly in the automotive industry, driven by the economic impacts of COVID-19
- Net income of $20.2 million decreased 64.4% and net income margin of 7.5% was down from 16.1% in the prior year.
- Sales for the Engineered Polymers product line were down somewhat due to reduced industrial demand, predominantly for caprolactone monomer.
- Sales decreased in Industrial Specialties applications due to demand weakness for printing inks as printed retail advertising declined.
- Sales to Oilfield Technologies customers were cut sharply in line with reduced drilling in North America.
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 2020
+1.9%
Avg return
Earnings day
+1.9%
Avg return
5 days after
+2.2%
Avg return
30 days after
58%
26 / 45 earnings
Positive
+22.0%
Q1 2020
Best reaction
-15.8%
Q3 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -4.9% | -8.2% | -15.3% | |
| Q4 2025 | +0.3% | +1.5% | +1.4% | |
| Q3 2025 | -15.8% | -9.1% | -2.8% | |
| Q1 2025 | +0.9% | +9.8% | +7.3% | |
| Q4 2024 | +5.3% | +0.6% | -7.5% | |
| Q3 2024 | +16.5% | +17.5% | +33.5% | |
| Q2 2024 | -7.5% | -23.2% | -14.3% | |
| Q1 2024 | +7.2% | +5.3% | -4.5% | |
| Q4 2023 | +3.1% | +4.7% | +3.1% | |
| Q3 2023 | +5.0% | -0.5% | +1.1% | |
| Q2 2023 | -11.2% | -14.0% | -12.4% | |
| Q1 2023 | -8.4% | -15.9% | -26.3% | |
| Q4 2022 | -6.8% | -7.8% | -21.1% | |
| Q3 2022 | +3.6% | +8.2% | +14.1% | |
| Q2 2022 | +5.0% | +3.0% | +4.2% | |
| Q1 2022 | +9.6% | +9.2% | +19.7% | |
| Q4 2021 | +0.9% | +4.2% | -0.5% | |
| Q3 2021 | -0.6% | -0.5% | -5.6% | |
| Q2 2021 | +5.4% | +1.4% | -1.0% | |
| Q1 2021 | +4.6% | +10.2% | +10.4% | |
| Q4 2020 | -6.6% | -4.6% | +6.3% | |
| Q3 2020 | -1.4% | +0.1% | +8.9% | |
| Q2 2020 | -2.1% | +1.9% | +1.3% | |
| Q1 2020 | +22.0% | +12.2% | +23.8% | |
| Q4 2019 | -2.9% | +2.5% | -24.5% | |
| Q3 2019 | +1.7% | +2.8% | +4.6% | |
| Q2 2019 | -1.2% | -2.9% | -26.9% | |
| Q1 2019 | -10.9% | -9.8% | -23.7% | |
| Q4 2018 | +9.8% | +13.2% | +3.0% | |
| Q3 2018 | +2.3% | -0.6% | +9.8% | |
| Q2 2018 | +11.3% | +10.0% | +14.5% | |
| Q1 2018 | +2.4% | +2.7% | -0.2% | |
| Q4 2017 | +7.3% | +12.3% | +3.8% | |
| Q3 2017 | +2.2% | +5.8% | +11.0% | |
| Q2 2017 | -0.7% | +1.3% | +8.1% | |
| Q1 2017 | -6.5% | -7.2% | -5.4% | |
| Q4 2014 | +4.3% | +2.5% | +6.7% | |
| Q4 2016 | -4.6% | -6.8% | +7.0% | |
| Q3 2015 | +11.0% | +10.8% | +22.7% | |
| Q3 2016 | +7.2% | +8.3% | +21.1% | |
| Q2 2015 | +14.3% | +14.8% | +17.2% | |
| Q2 2016 | +15.8% | +15.8% | +18.4% | |
| Q1 2016 | -0.3% | — | — | |
| Q1 2015 | -0.3% | — | — | |
| Q4 2015 | -0.3% | — | — | |
| Q3 2014 | — | — | — | |
| Q2 2014 | — | — | — | |
| Q1 2014 | — | — | — |
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