NYSE$SCL
Stepan Company · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
Stepan reported record fourth quarter and full year earnings, driven by strong surfactant volume growth and a polymer business boost from insurance recovery.
Stepan Company reported a strong fourth quarter with net income reaching $30.4 million, or $1.30 per diluted share, compared to $22.0 million, or $0.95 per diluted share, in the prior year. Adjusted net income was $33.1 million, or $1.42 per diluted share, versus $25.7 million, or $1.10 per diluted share, in the prior year. The company's performance was driven by increased demand for cleaning and disinfection products and an insurance recovery related to a plant power outage.
- Net income increased to $30.4 million, or $1.30 per diluted share, compared to $22.0 million, or $0.95 per diluted share, in the prior year.
- Adjusted net income reached $33.1 million, or $1.42 per diluted share, versus $25.7 million, or $1.10 per diluted share, in the prior year.
- Surfactant operating income rose to $43.3 million, driven by an 8% increase in global sales volume.
- Polymer operating income increased to $22.8 million, boosted by an insurance recovery and a 7% increase in global polymer sales volume.
Headline financials
Revenue & EPS history
Stepan · Revenue · Quarterly
$495M
Revenue by segment
Stepan · $495M total across 3 segments · Q4 2020
- Surfactants$358M+15.6%72.5%
- Polymers$117M+0.2%23.6%
- Specialty Products$19.6M+5.5%4.0%
Forward guidance
Stepan expects strong surfactant volumes in consumer product markets due to high demand for cleaning and disinfection products. They anticipate a slight improvement in surfactant demand in agricultural and oilfield markets and a modest recovery in global demand for rigid polyols. The acquisition of INVISTA's aromatic polyester polyol business is expected to support long-term demand growth, with slight improvements expected in the Specialty Product business.
Tailwinds
- Surfactant volumes in consumer product end markets should remain strong.
- Demand for surfactants within the agricultural and oilfield markets will improve slightly in 2021.
- Global demand for rigid polyols has slowly recovered from pandemic-related delays.
- INVISTA’s aromatic polyester polyol business acquisition positions Stepan to meet long term demand growth.
- Specialty Product business results will improve slightly year-over-year.
Headwinds
- No specific negatives were mentioned in the outlook summary.
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 Q4 2020
-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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