NYSE$OEC

Orion SA · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Financial results announced for the third quarter ended September 30, 2020.

Orion Engineered Carbons S.A. reported a decrease in net sales to $282.0 million compared to $370.2 million in Q3 2019. Net income also decreased to $9.0 million, with basic EPS at $0.15. Adjusted EBITDA was $55.0 million, reflecting the impact of lower feedstock costs and the COVID-19 induced global economic downturn.

  • Continued focus on protecting employees, maintaining agile production and managing costs.
  • Benefited from a pronounced sequential demand surge.
  • Rubber business recovered to 91 percent of prior year levels, with improved pricing.
  • Specialty business achieved a remarkable rebound in the quarter with volume level tracking at 97 percent of prior year levels, with positive pricing being offset by mix

Headline financials

Total Revenue

$282M

Previous: $370M-23.8%
EPS (adj)

$0.34

Previous: $0.52-34.6%
Total Volume (kmt)

237.0K

Previous: 256.4K-7.6%
Adjusted EBITDA

$55M

Previous: $68.1M-19.2%
Free Cash Flow

$9M

No prior period
Net Income

$9M

Previous: $24.3M-62.9%
Operating Income

$24.1M

Previous: $38.4M-37.1%
Gross Profit

$79.2M

Previous: $98.7M-19.8%
Cash & Equivalents

$97.5M

Previous: $56M+74.3%
Total Assets

$1.35B

Previous: $1.23B+9.5%
Stock-Based Comp

$1.18M

Previous: $2.03M-41.6%

Revenue & EPS history

Orion · Revenue · Quarterly

$282M

Q3 2020-23.8%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Orion · $282M total across 2 segments · Q3 2020

  • Rubber Carbon Black
    $178M
  • Specialty Carbon Black
    $104M

Forward guidance

Orion projects fourth quarter Adjusted EBITDA in the range of $44 million to $54 million, reflecting a continuation of recent trends, despite typical end of year seasonality dynamics.

Tailwinds

  • Third quarter demand surge and current fourth quarter order book patterns are encouraging.
  • If the global economy recovers, our businesses should participate and reflect substantial operating leverage.
  • Focus will remain on safety.
  • Focus will remain on protecting our employees.
  • Focus will remain on staying agile to serve our customers.

Headwinds

  • We can't predict the course or duration of the global pandemic.
  • A meaningful decline in economic activity would curtail our guidance.
  • Typical end of year seasonality dynamics.

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

Historical avgQ3 2020

-0.9%

Avg return

Earnings day

-1.5%

Avg return

5 days after

+0.2%

Avg return

30 days after

57%

26 / 46 earnings

Positive

+10.0%

Q4 2022

Best reaction

-27.4%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-12.3%-8.5%-18.0%
Q4 2025-19.8%-14.5%-26.9%
Q3 2025-8.4%-1.0%+1.6%
Q1 2025-10.6%-0.8%+0.5%
Q4 2024+3.3%-0.4%-8.3%
Q3 2024-5.9%+5.3%+7.9%
Q2 2024-27.4%-28.0%-24.2%
Q1 2024-0.0%+4.0%+5.3%
Q4 2023+1.6%+0.8%-1.6%
Q3 2023+4.5%+4.1%+20.6%
Q2 2023+5.5%+4.0%+4.8%
Q1 2023+6.7%-0.2%+11.2%
Q4 2022+10.0%+11.4%+10.7%
Q3 2022+6.2%+11.1%+20.7%
Q2 2022-8.0%-8.1%-3.8%
Q1 2022+1.7%+0.8%+22.6%
Q4 2021-9.5%-19.4%-18.7%
Q3 2021+0.8%-0.4%-10.8%
Q2 2021+1.4%+0.2%+3.9%
Q1 2021-1.1%-6.1%-7.4%
Q4 2020-2.0%+2.0%+19.1%
Q3 2020-6.2%+3.2%+14.0%
Q2 2020+9.4%+11.4%+15.7%
Q1 2020+4.9%-5.5%+54.9%
Q4 2019+6.9%-5.7%-54.6%
Q3 2019+8.9%+15.9%+8.1%
Q2 2019-20.8%-29.5%-28.6%
Q1 2019+4.9%+2.9%-11.2%
Q4 2018-19.3%-22.6%-27.5%
Q3 2018+8.2%+2.1%+1.2%
Q2 2018+8.0%+9.5%+10.3%
Q1 2018+0.0%+1.5%+19.8%
Q4 2017+1.3%-0.4%-8.9%
Q3 2017+0.6%+2.8%+2.8%
Q2 2017+2.6%-2.6%+3.8%
Q1 2017+0.5%-2.9%-7.4%
Q4 2016-1.0%-0.7%-9.3%
Q3 2016+3.4%+1.1%+0.8%
Q2 2016+7.0%+6.4%+13.1%
Q1 2016+9.1%
Q4 2015+1.8%
Q3 2015-6.7%
Q2 2015-0.7%
Q1 2015-0.3%
Q4 2014+1.5%
Q3 2014-2.1%
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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