NYSE$NGVT
Ingevity Corporation · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Ingevity's Q3 2020 results were driven by global automotive demand and production rebound, continued strong paving activity, cost reduction actions and strong execution.
Ingevity reported Q3 2020 net sales of $332 million, a decrease of 7.8% compared to the prior year quarter. Net income increased by 16.7% to $70 million, and adjusted EBITDA rose by 11.9% to $128 million. The company also generated $74 million in free cash flow and increased its full-year adjusted EBITDA guidance to $355 million - $365 million and sales guidance to $1.15 billion - $1.20 billion.
- Net sales were $332 million, down 7.8% year-over-year due to COVID-19 impacts.
- Net income increased 16.7% year-over-year to $70 million, with a net income margin of 21.1%.
- Adjusted EBITDA increased 11.9% year-over-year to $128 million, with an adjusted EBITDA margin of 38.5%.
- The company generated $74 million in free cash flow.
Headline financials
Revenue & EPS history
Ingevity · Revenue · Quarterly
$332M
Revenue by segment
Ingevity · $332M total across 2 segments · Q3 2020
- Performance Chemicals$188M-18.2%56.6%
- Performance Materials$144M+10.6%43.4%
Forward guidance
Ingevity narrowed its fiscal year 2020 guidance for sales from between $1.10 billion and $1.20 billion to between $1.15 billion and $1.20 billion, and increased and narrowed its guidance for adjusted EBITDA from between $310 million and $350 million to between $355 million and $365 million.
Tailwinds
- Company increases and narrows fiscal year 2020 guidance for adjusted EBITDA to between $355 million and $365 million.
- Company narrows guidance for sales to between $1.15 billion and $1.20 billion.
- Cost controls implemented are expected to maintain favorable adjusted EBITDA and adjusted EBITDA margins.
- Honeycomb scrubbers quarterly production reached a record.
- Strong leverage of low variable cost structure
Headwinds
- Weakness may continue on the revenue line.
- Uncertainty remains regarding global economic strength.
- Performance Chemicals segment was negatively impacted by a weak economy resulting from COVID-19.
- Sales for engineered polymers products were down due to reduced industrial demand globally.
- Sales decreased in industrial specialties applications due to continued demand weakness for printing inks and other end-use applications.
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 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 | — | — | — |
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