NYSE$SCL
Stepan Company · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Stepan had strong performance and delivered record results, despite ongoing supply chain challenges.
Stepan Company reported a record net income of $39.4 million, or $1.71 per diluted share, for the third quarter of 2022, compared to $36.9 million, or $1.59 per diluted share, in the prior year. Adjusted net income was $46.3 million, or $2.01 per diluted share, versus $36.4 million, or $1.57 per diluted share, in the prior year. Total Company sales volume decreased 8% versus the prior year.
- Surfactant operating income was $39.0 million versus $34.5 million in the prior year, driven by improved product and customer mix.
- Polymer operating income was $31.9 million versus $19.8 million in the prior year, attributable to margin recovery and improved mix.
- Specialty Product operating income was $9.7 million versus $2.4 million in the prior year, primarily attributable to improved margins and customer mix within the medium chain triglycerides (MCTs) product line.
- The company increased its quarterly cash dividend in the fourth quarter of 2022 by $0.03 per share, or 9.0%, marking the 55th consecutive year of increased cash dividend.
Headline financials
Revenue & EPS history
Stepan · Revenue · Quarterly
$719M
Revenue by segment
Stepan · $719M total across 3 segments · Q3 2022
- Surfactants$475M+22.5%66.0%
- Polymers$215M+8.0%29.9%
- Specialty Products$29.5M+83.2%4.1%
Forward guidance
The Company delivered record third quarter and nine-month results and we expect to deliver record full year earnings again in 2022.
Tailwinds
- Surfactants, Polymers and Specialty Products should all deliver full year earnings growth versus prior year.
- Surfactant volumes within the Functional Products and Industrial Cleaning end markets are expected to show full year growth over 2021.
- The long-term outlook for Rigid Polyols will remain attractive as energy conservation efforts and more stringent building codes are expected to continue.
Headwinds
- The Company will be challenged by slowing global economic growth.
- The Company will be challenged by weakening consumer and construction demand.
- The Company will be challenged by continued inflationary pressures.
- The Company will be challenged by a stronger U.S. dollar.
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 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
| Quarter | Report date | Reaction (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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