NYSE$NGVT
Ingevity Corporation · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Reported an increase in net sales and adjusted EBITDA, driven by strong performance in the Performance Materials segment and the addition of the engineered polymers product line.
Ingevity reported Q4 2019 net sales of $303.4 million, up 8.9% year-over-year, and net income of $44.3 million, up 5.2% year-over-year. Adjusted EBITDA was $91.1 million, up 24.3% year-over-year, with an adjusted EBITDA margin of 30.0%. The company announced FY 2020 guidance of sales between $1.30 billion and $1.35 billion and adjusted EBITDA between $400 million and $420 million.
- Net sales increased by 8.9% to $303.4 million compared to the prior year quarter.
- Net income increased by 5.2% to $44.3 million compared to the prior year quarter.
- Adjusted EBITDA increased by 24.3% to $91.1 million compared to the fourth quarter of 2018.
- Performance Materials segment's growth was fueled by automakers' implementation of China 6 gasoline vapor emission control standards.
Headline financials
Revenue & EPS history
Ingevity · Revenue · Quarterly
$303M
Revenue by segment
Ingevity · $303M total across 2 segments · Q4 2019
- Performance Chemicals$175M+5.5%57.7%
- Performance Materials$128M+14.0%42.3%
Forward guidance
Ingevity announced its fiscal year 2020 guidance to sales between $1.30 billion and $1.35 billion and adjusted EBITDA between $400 million and $420 million. Free cash flow will be between $200 million and $220 million.
Tailwinds
- Performance Materials segment to deliver double-digit revenue growth
- Performance Materials segment to deliver accretion in adjusted EBITDA margins
- Engineered polymers will deliver solid growth due to new product and innovation projects in the pipeline
- Pavement technologies will see continued solid growth driven by adoption of our Evotherm® warm mix technology and global expansion
- Earnings growth and accreting margins, coupled with lower capital demands, will result in substantially higher free cash flow
Headwinds
- Guidance reflects little to no improvement in the global macroeconomic environment
- Assumes limited impacts from the coronavirus in China, which remains unknown
- Revenues for Performance Chemicals segment expected to be flat to down slightly
- Continued pressure in industrial specialties and oilfield applications
- Performance Chemicals segment adjusted EBITDA margins will be flat to down modestly for the year
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 2019
+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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