NYSE$ODC

Oil-Dri Corporation of America · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Oil-Dri's Q3 2020 results were announced, marked by record net sales and increased operating income, driven by high demand for cat litter and resilient business-to-business operations.

Oil-Dri Corporation of America reported record net sales of $76.3 million for the third quarter of fiscal 2020, an 8% increase compared to the same period last year. This growth was primarily driven by high demand for cat litter due to the COVID-19 pandemic and strong performance in the Business to Business Group. Consolidated operating income increased by 145% to $5.7 million, while diluted earnings per share were $0.61.

  • Record quarterly consolidated net sales reached $76.3 million, an 8% increase year-over-year.
  • Consolidated gross margins improved to 28% due to lower freight and natural gas costs.
  • Operating income grew by 145% to $5.7 million, driven by increased sales and lower costs.
  • Retail and Wholesale Products Group experienced record sales, with a 20% increase in domestic cat litter revenues due to COVID-19 related demand.

Headline financials

Total Revenue

$76.3M

Previous: $70.9M+7.6%
EPS (adj)

$0.61

Previous: $0.74-17.6%
Gross Margin

28.0%

Previous: 24.0%+16.7%
Capital Expenditures

-$10.9M

Previous: -$10.2M-7.0%
Free Cash Flow

-$6.22M

Previous: -$4.54M-37.0%
Net Income

$4.65M

Previous: $5.62M-17.3%
Operating Income

$5.7M

Previous: $2.33M+145.0%
Gross Profit

$21.4M

Previous: $16.8M+27.0%
Cash & Equivalents

$20.5M

Previous: $16.2M+26.7%
Total Assets

$216M

Previous: $198M+8.8%

Revenue & EPS history

Oil-Dri · Revenue · Quarterly

$76.3M

Q3 2020+7.6%vs Q3 2019

Revenue by segment

Oil-Dri · $76.3M total across 2 segments · Q3 2020

  • Retail and Wholesale
    $49.6M+10.5%
  • Business to Business
    $26.7M+2.5%

Forward guidance

The company did not provide specific forward guidance, but expects advertising costs for the full fiscal year to be higher than last year.

Tailwinds

  • Company is adapting to the evolving situation and working hard to keep business running to meet the changing needs of customers.
  • Manufacturing facilities remained open, and the company continues to operate to keep pace with demand.
  • The company achieved record quarterly consolidated net sales.
  • Business to Business Group’s diversified product portfolio proved to be resilient.
  • Consolidated gross margins rose due to lower freight and natural gas costs.

Headwinds

  • Sales to pork producers within China remained soft as a result of the continued spread of the African swine fever within some areas of the country.
  • Revenues from fluid purification products declined due to lower demand from edible oil producers due to worldwide COVID-19 closures of restaurants and schools.
  • Local pricing competition in foreign markets caused by unfavorable exchange rates and the closure of a domestic biodiesel processing plant also contributed to the decline in revenues from fluid purification products.
  • Decreased demand of industrial and sports products due to COVID-19 offset some of the sales gains within the Retail and Wholesale Products Group.
  • Higher incentive bonus accruals and other compensation and benefits costs accounted for the increase in SG&A expenses over the prior year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.0%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+4.2%

Avg return

30 days after

58%

32 / 55 earnings

Positive

+19.9%

Q3 2023

Best reaction

-17.1%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+18.4%+13.7%
Q2 2026+3.7%-5.1%+12.2%
Q1 2026-12.7%-4.4%-3.9%
Q4 2025+8.0%-0.5%-6.5%
Q3 2025+0.0%+1.5%+5.8%
Q2 2025+9.0%+6.9%-5.0%
Q1 2025+18.4%+28.0%+24.2%
Q4 2024+5.9%+4.8%+12.5%
Q3 2024-15.7%-13.8%-26.7%
Q2 2024-1.1%-0.0%-1.2%
Q1 2024+9.6%+16.7%+13.4%
Q4 2023-9.8%-6.9%-8.5%
Q3 2023+19.9%+27.6%+60.2%
Q2 2023+5.3%+4.4%+7.4%
Q1 2023+5.0%+3.1%+5.9%
Q4 2022+13.1%+18.0%+35.5%
Q3 2022+2.6%+8.6%+22.3%
Q2 2022-2.6%+4.1%-2.0%
Q1 2022+1.8%-1.0%+4.6%
Q4 2021+0.5%+0.4%+0.3%
Q3 2021-4.8%-6.2%-8.3%
Q2 2021+0.2%-1.1%-7.5%
Q1 2021+1.0%+4.3%+0.8%
Q4 2020-5.0%-2.2%-11.3%
Q3 2020-4.2%-8.6%-8.1%
Q2 2020+1.1%-0.6%+2.0%
Q1 2020+1.1%+5.5%-0.1%
Q4 2019+2.5%+1.8%+13.4%
Q3 2019+3.8%-1.0%+19.5%
Q2 2019-0.3%+10.4%+16.7%
Q1 2019-4.3%-5.0%-3.1%
Q4 2018-0.9%-12.9%-5.1%
Q3 2018-3.1%-7.1%-1.9%
Q2 2018+0.3%+4.5%+9.3%
Q1 2018+0.6%+0.7%-7.5%
Q4 2017-17.1%-17.4%-16.5%
Q3 2017+6.9%+13.1%+20.1%
Q2 2017+1.4%+6.6%+7.8%
Q1 2017+2.3%-0.6%-8.4%
Q4 2016-1.3%+1.1%-2.7%
Q3 2016+1.2%+4.8%+7.2%
Q2 2016-9.9%
Q1 2015+8.3%
Q3 2015-3.4%
Q2 2014+1.4%
Q4 2012-1.5%
Q2 2012+2.3%
Q1 2012-1.9%
Q4 2011+4.1%
Q3 2011+0.6%
Q2 2011-3.1%
Q1 2010-2.8%
Q4 2010-2.6%
Q3 2010-0.4%
Q2 2009+1.8%

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