NYSE$NGVT

Ingevity Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported solid results despite supply chain challenges, inflationary cost pressures, and microchip shortage.

Ingevity Corporation reported a 3.2% increase in net sales for Q4 2021, reaching $336.0 million, and a 14.4% increase for the full year, with net sales of $1.4 billion. Despite these gains, net income for Q4 decreased by 36.3% to $29.3 million, while adjusted earnings decreased by 43.9% to $30.9 million, primarily due to the microchip shortage impacting automotive emission product volumes.

  • Q4 net sales increased 3.2% to $336.0 million; FY net sales increased 14.4% to $1.4 billion.
  • Q4 net income was $29.3 million, with diluted EPS of $0.74; adjusted earnings were $30.9 million, with diluted adjusted EPS of $0.78.
  • FY net income was $118.1 million, with diluted EPS of $2.95; adjusted earnings increased 3.4% to $209.5 million, with diluted adjusted EPS of $5.23.
  • FY adjusted EBITDA increased 6.1% to $422.2 million, though the adjusted EBITDA margin decreased to 30.3%.

Headline financials

Total Revenue

$336M

Previous: $326M+3.2%
EPS (adj)

$0.78

Previous: $1.33-41.4%
Net Income

$29.3M

Previous: $50.8M-42.3%
Operating Income

$49.7M

Previous: $66.4M-25.2%
Gross Profit

$105M

Previous: $127M-17.6%
Cash & Equivalents

$275M

Previous: $258M+6.9%
Total Assets

$2.47B

Previous: $2.33B+5.8%

Revenue & EPS history

Ingevity · Revenue · Quarterly

$336M

Q4 2021+3.2%vs Q4 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Ingevity · $336M total across 2 segments · Q4 2021

  • Performance Chemicals
    $204M+23.7%
  • Performance Materials
    $132M-17.9%

Forward guidance

Ingevity announced its 2022 guidance of sales between $1.525 billion to $1.60 billion and adjusted EBITDA between $430 million to $460 million.

Tailwinds

  • Performance Chemicals revenue will outpace ongoing energy, logistics and raw materials inflation.
  • Continue to optimize operations and inventory to provide outstanding service to customers.
  • Remain committed to capturing the maximum value for our products.
  • Advance our strategic growth efforts.
  • Advance sustainability efforts.

Headwinds

  • Modest outlook for Performance Materials.
  • Vehicle production will continue to be constrained by the prolonged microchip shortage.
  • Vehicle production will be constrained by other automotive supply chain issues.

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

+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

Earnings price reactions
QuarterReport dateReaction (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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