NYSE$ODC

Oil-Dri Corporation of America · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Oil-Dri announced record sales and gross profit for Q3 2024.

Oil-Dri reported a 1% increase in consolidated net sales, reaching $106.8 million, marking the 12th consecutive quarter of year-over-year sales growth. Gross profit increased by 10% to $30.1 million, with gross margins expanding to 28%. The company's net income attributable to Oil-Dri decreased to $7.8 million from $8.5 million in the same period last year.

  • Consolidated net sales increased by 1% to $106.8 million, marking the 12th consecutive quarter of year-over-year sales growth.
  • Gross profit increased by 10% to $30.1 million, with gross margins expanding to 28%.
  • Operating income decreased by 28% to $10.4 million due to higher SG&A expenses.
  • Acquisition of Ultra Pet Company, Inc. was completed on May 1, 2024, for $46 million, expected to be accretive to earnings in Q4 2024.

Headline financials

Total Revenue

$107M

Previous: $105M+1.3%
EPS

$1.07

Previous: $1.94-44.8%
SG&A Expenses

$19.7M

No prior period
Capital Expenditures

-$23.7M

Previous: -$17.4M-36.0%
Free Cash Flow

-$15.9M

Previous: -$8.91M-78.9%
Net Income

$7.78M

Previous: $8.54M-8.9%
Operating Income

$10.4M

Previous: $14.5M-27.8%
Gross Profit

$30.1M

Previous: $27.5M+9.7%
Cash & Equivalents

$46.8M

Previous: $29.7M+57.4%
Total Assets

$319M

Previous: $270M+18.1%

Revenue & EPS history

Oil-Dri · Revenue · Quarterly

$107M

Q3 2024+1.3%vs Q3 2023

Revenue by segment

Oil-Dri · $111M total across 2 segments · Q1 2024

  • Retail and Wholesale
    $72.3M+11.4%
  • Business to Business
    $39.2M+16.2%

Forward guidance

Oil-Dri anticipates the acquisition of Ultra Pet Company, Inc. to be immediately accretive to earnings and create long-term value for shareholders. The company expects advertising costs for the full fiscal year 2024 to be higher than fiscal year 2023. Additional expenses related to the integration of Ultra Pet are expected to be incurred in the fourth quarter of fiscal year 2024.

Tailwinds

  • Ultra Pet acquisition expected to be immediately accretive to earnings.
  • Strategic alignment and complementary cat litter products between Oil-Dri and Ultra Pet.
  • Leveraging strong relationships to drive distribution at key retailers for Ultra Pet products.
  • Seamless integration of Ultra Pet into Oil-Dri's business expected over the next few quarters.
  • Lightweight attribute of Ultra Pet's crystal products appreciated by consumers and retailers.

Headwinds

  • Elevated costs impacted the bottom line.
  • Increased advertising expenses.
  • Additional expenses related to the integration of Ultra Pet are expected to be incurred in the fourth quarter of fiscal year 2024.
  • Sales from agricultural, animal health, and industrial & sports products declined in the third quarter compared to last year.
  • Challenging global economic and market conditions continue to impact the protein production industry.

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 2024

Historical avgQ3 2024

+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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