NYSE$SCL

Stepan Company · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Stepan's first quarter results were reported, with record net income achieved.

Stepan Company reported a solid start to the year with a 26% increase in net sales and a 10% increase in net income compared to the prior year. The company faced challenges including a power outage at the Millsdale, IL plant and ongoing global supply chain issues, but saw growth in surfactant operating income and polymer sales volume.

  • Reported net income was a record $44.8 million, up from $40.6 million in the prior year.
  • Surfactant operating income increased to $53.8 million, driven by improved product and customer mix.
  • Polymer operating income decreased due to a power outage at the Millsdale, IL plant, though sales volume increased.
  • Specialty Product operating income increased, primarily due to order timing differences and margin recovery.

Headline financials

Total Revenue

$675M

Previous: $538M+25.6%
EPS (adj)

$1.76

Previous: $1.82-3.3%
Capital Expenditures

-$60.3M

Previous: -$37.6M-60.2%
Free Cash Flow

-$15.5M

Previous: $2.98M-619.6%
Net Income

$44.8M

Previous: $40.6M+10.3%
Operating Income

$63.3M

Previous: $53.9M+17.5%
Gross Profit

$109M

Previous: $109M+0.2%
Cash & Equivalents

$236M

Previous: $151M+56.6%
Total Assets

$2.27B

Previous: $1.83B+24.3%
Stock-Based Comp

$2.96M

Previous: $2.54M+16.5%

Revenue & EPS history

Stepan · Revenue · Quarterly

$675M

Q1 2022+25.6%vs Q1 2021
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Stepan · $675M total across 3 segments · Q1 2022

  • Surfactants
    $468M+26.2%
  • Polymers
    $187M+24.4%
  • Specialty Products
    $19.9M+21.4%

Forward guidance

The company anticipates strong demand across its business but expects continued challenges from external supply chain issues. Surfactant volumes in functional product end-markets are expected to improve, the Polymer business is expected to deliver growth, and Specialty Product business results are anticipated to improve slightly year-over-year.

Tailwinds

  • Demand across the business is expected to remain strong.
  • Surfactant volumes within the functional product end-markets are expected to improve.
  • Favorable commodity pricing environment will drive surfactant volume growth.
  • Polymer business is expected to deliver growth versus the prior year.
  • Long-term prospects for rigid polyols remain attractive.

Headwinds

  • Company will continue to be challenged by external supply chain issues.
  • Raw material availability and transportation constraints will impact the company.
  • The company is facing an inflationary environment.
  • Ongoing supply chain challenges are expected to persist.
  • Unspecified external 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 Q1 2022

Historical avgQ1 2022

-0.5%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-0.7%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+12.4%

Q1 2015

Best reaction

-20.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%-0.7%-2.7%
Q4 2025-20.4%-24.3%-25.2%
Q3 2025-0.4%-4.1%+2.2%
Q1 2025+7.1%+13.8%+15.2%
Q4 2024+0.1%-0.0%-7.3%
Q3 2024-0.8%-0.2%+5.4%
Q2 2024-11.0%-18.9%-13.8%
Q1 2024-0.6%+1.4%+0.2%
Q4 2023-2.5%-2.3%-3.2%
Q3 2023+7.9%+9.1%+18.7%
Q2 2023-3.8%-0.6%-10.1%
Q1 2023-10.2%-7.2%-5.8%
Q4 2022-2.4%-4.5%-13.3%
Q3 2022-2.9%-0.3%+10.5%
Q2 2022+8.6%+5.4%+2.0%
Q1 2022+4.9%+3.9%+11.7%
Q4 2021-3.5%-5.6%-9.7%
Q3 2021+2.4%+1.2%+1.9%
Q2 2021-0.1%+0.2%-1.0%
Q1 2021-0.7%-0.8%+2.1%
Q4 2020-2.9%-2.1%+4.7%
Q3 2020-0.5%+2.0%+7.0%
Q2 2020+7.5%+7.6%+12.8%
Q1 2020-1.9%-0.3%+4.8%
Q4 2019-1.6%-8.3%-26.6%
Q3 2019+0.1%+3.6%+1.4%
Q2 2019+3.7%+3.2%-2.0%
Q1 2019-0.2%-0.2%-6.2%
Q4 2018+1.5%+0.9%-7.7%
Q3 2018+3.0%+1.0%-2.1%
Q2 2018+5.3%+6.4%+8.8%
Q1 2018-17.2%-18.5%-20.0%
Q4 2017+5.8%+10.3%+11.3%
Q3 2017-7.0%-7.3%-4.3%
Q2 2017-7.2%-10.2%-15.9%
Q1 2017+9.7%+4.8%+7.4%
Q4 2016-10.3%-5.9%-0.7%
Q3 2016+6.6%+2.9%+11.9%
Q2 2016+4.2%+2.4%+11.6%
Q1 2016+6.6%
Q4 2015+12.0%
Q3 2015+8.8%
Q2 2015-10.6%
Q1 2015+12.4%
Q4 2014-0.6%
Q3 2014-5.2%
Q2 2014-1.5%
Q1 2014-1.7%
Q4 2013-5.1%
Q3 2013+0.6%
Q2 2013+0.7%
Q1 2013-11.4%
Q2 2010-0.5%
Q4 2012-0.1%
Q3 2012-3.8%
Q2 2012-8.0%
Q1 2011+3.6%
Q1 2012+3.9%
Q4 2009+4.7%
Q4 2011+4.7%
Q3 2011-4.5%
Q3 2010-4.5%
Q4 2010-2.0%
Q2 2011-2.0%
Q1 2010+1.7%

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