NYSE$SCL

Stepan Company · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Stepan's Q1 2023 results were impacted by lower sales volume and customer destocking.

Stepan Company reported a decrease in net income and sales volume for Q1 2023 compared to the prior year. Net income was $16.1 million, or $0.70 per diluted share, versus $44.8 million, or $1.93 per diluted share in the prior year. Total Company sales volume decreased 14% versus the prior year.

  • Net income decreased to $16.1 million, or $0.70 per diluted share.
  • Total Company sales volume decreased 14% compared to the prior year.
  • Surfactant operating income decreased due to a decline in global sales volume.
  • Polymer operating income decreased due to a decline in global sales volume.

Headline financials

Total Revenue

$651M

Previous: $675M-3.5%
EPS (adj)

$0.71

Previous: $1.76-59.7%
EBITDA

$48.3M

No prior period
Adjusted EBITDA

$48.7M

No prior period
Capital Expenditures

-$92.2M

Previous: -$60.3M-52.9%
Free Cash Flow

-$76M

Previous: -$15.5M-391.1%
Net Income

$16.1M

Previous: $44.8M-64.0%
Operating Income

$21.1M

Previous: $63.3M-66.8%
Gross Profit

$73.6M

Previous: $109M-32.6%
Cash & Equivalents

$127M

Previous: $236M-46.2%
Total Assets

$2.45B

Previous: $2.27B+7.6%
Stock-Based Comp

$999K

Previous: $2.96M-66.2%

Revenue & EPS history

Stepan · Revenue · Quarterly

$651M

Q1 2023-3.5%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Stepan · $651M total across 3 segments · Q1 2023

  • Surfactants
    $468M-0.1%
  • Polymers
    $161M-13.9%
  • Specialty Products
    $22.5M+12.8%

Forward guidance

Second quarter volumes are expected to remain depressed as markets continue to reconcile forward demand with inventory levels. Volume growth is expected in the second half of the year, driven by recovery in demand for Rigid Polyols, growth in Surfactant volumes associated with new contracted business and a low comparable base.

Tailwinds

  • Second half year over year volume growth driven by modest recovery in demand for Rigid Polyols
  • Growth in Surfactant volumes associated with new contracted business
  • A low comparable base
  • Actively control costs
  • Execute productivity programs

Headwinds

  • Second quarter volumes will remain depressed
  • Markets continue to reconcile forward demand with inventory levels throughout the channel.
  • Ongoing inflationary cost pressures
  • Higher cash expenses related to the construction and pre-commissioning activities of our new Alkoxylation investment in Pasadena, Texas
  • Startup of our new low 1,4 dioxane capacity in the U.S.

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 2023

Historical avgQ1 2023

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro