NYSE$SXT

Sensient Technologies Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Sensient's Q2 2020 earnings were reported, with Flavors & Fragrances Group showing strong revenue and profit growth and the sale of the Inks product line completed.

Sensient Technologies Corporation reported a decrease in revenue and operating income for the second quarter of 2020 compared to the same period in 2019. Revenue decreased by 4.7% to $323.1 million, and operating income decreased by 11.1% to $42.1 million. Diluted earnings per share also decreased from 81 cents to 72 cents.

  • Diluted earnings per share were reported at 72 cents, down from 81 cents in Q2 2019.
  • Revenue reached $323.1 million, a decrease from $339.2 million in the prior year's quarter.
  • Operating income totaled $42.1 million, compared to $47.4 million in Q2 2019.
  • The Flavors & Fragrances Group experienced revenue growth, while the Color Group and Asia Pacific Group saw revenue declines.

Headline financials

Total Revenue

$323M

Previous: $339M-4.7%
EPS (adj)

$0.70

Previous: $0.81-13.6%
Total Revenue Change

-4.7%

No prior period
Flavors & Extracts Revenue Change

1.9%

No prior period
Color Revenue Change

-12.7%

No prior period
Asia Pacific Revenue Change

-3.9%

No prior period
Capital Expenditures

-$21.4M

Previous: -$16.6M-29.0%
Free Cash Flow

$9.2M

Previous: $17.7M-48.1%
Net Income

$30.6M

Previous: $34.3M-10.8%
Operating Income

$42.1M

Previous: $47.4M-11.1%
Gross Profit

$102M

Previous: $112M-8.5%
Cash & Equivalents

$20.9M

Previous: $29.9M-30.1%
Total Assets

$1.67B

Previous: $1.83B-8.3%
Stock-Based Comp

$1.49M

Previous: -$1.84M+180.6%

Revenue & EPS history

Sensient · Revenue · Quarterly

$323M

Q2 2020-4.7%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Sensient · $333M total across 3 segments · Q2 2020

  • Flavors & Extracts
    $184M+1.9%
  • Color
    $121M-12.7%
  • Asia Pacific
    $27.9M-3.9%

Forward guidance

Sensient Technologies Corporation provided its diluted earnings per share guidance for 2020, setting it at $2.10 to $2.35. This includes divestiture & other related costs and the results of operations divested and to be divested. The company also reconfirms its previously issued guidance of $2.60 to $2.80 for adjusted diluted earnings per share, excluding certain costs and impacts.

Tailwinds

  • Reconfirms previously issued guidance of $2.60 to $2.80 for adjusted diluted earnings per share.
  • Expects 2020 Adjusted EBITDA to grow at a low to mid-single digit rate on a local currency basis.
  • Sale of Inks product line completed.
  • Definitive agreement signed for the sale of its yogurt fruit preparations product line.
  • Company expects low to mid-single digit revenue growth in 2020 on a local currency basis, excluding the revenues of the product lines divested and to be divested.

Headwinds

  • Previous diluted earnings per share guidance for 2020 was $1.85 to $2.15.
  • Adjusted Operating Income will be impacted by higher non-cash performance-based compensation.
  • Full impact of COVID-19 remains unknown and continues to create uncertainty.
  • Foreign currency translation decreased revenue, operating income, and earnings per share by approximately 3% in the quarter.
  • Operating income decreased by 11.1%.

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 Q2 2020

Historical avgQ2 2020

-0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+0.3%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+24.6%

Q1 2026

Best reaction

-16.1%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+24.6%+21.5%+15.2%
Q4 2025-5.0%-6.4%-9.0%
Q3 2025+2.8%+7.1%+8.6%
Q2 2025-4.3%-5.7%-11.9%
Q1 2025+13.5%+17.2%+17.2%
Q4 2024-7.5%-9.0%-4.8%
Q3 2024+2.2%-0.3%+1.5%
Q2 2024-2.8%-3.1%-6.4%
Q1 2024+4.4%+5.8%+8.4%
Q4 2023-4.2%-3.0%+8.9%
Q3 2023+1.0%-1.2%+8.1%
Q2 2023-7.3%-5.1%-15.6%
Q1 2023+2.8%+2.4%-1.6%
Q4 2022+6.0%+9.1%-3.3%
Q3 2022-6.6%-1.8%+4.2%
Q2 2022-1.0%+1.1%+2.6%
Q1 2022+0.6%+3.1%+3.1%
Q4 2021-3.8%-2.8%-9.7%
Q3 2021+4.9%+4.4%+10.8%
Q2 2021+6.0%+5.5%+5.8%
Q1 2021+2.2%+1.4%+6.6%
Q4 2020-3.0%-0.9%+3.8%
Q3 2020+7.5%+8.8%+14.2%
Q2 2020-3.5%-4.0%-2.7%
Q1 2020+2.2%-0.4%+7.2%
Q4 2019-10.4%-9.0%-25.7%
Q3 2019-9.2%-7.1%-5.6%
Q2 2019-2.9%-0.7%-6.1%
Q1 2019+1.3%+4.1%-3.5%
Q4 2018+1.3%+3.1%+6.5%
Q3 2018-16.1%-17.5%-13.9%
Q2 2018-7.6%-7.9%-4.2%
Q1 2018+1.1%-0.8%+1.7%
Q4 2017-1.1%+0.8%+8.5%
Q3 2017+0.6%-1.7%-4.1%
Q2 2017-7.2%-7.1%-11.3%
Q1 2017+1.5%-0.4%-2.1%
Q4 2016+2.0%+2.5%+2.5%
Q3 2016+1.2%+2.0%+5.3%
Q2 2016+6.2%+4.0%+3.4%
Q1 2016+1.1%
Q4 2015-6.6%
Q3 2015-0.2%
Q2 2015-2.6%
Q1 2015+1.9%
Q4 2014+0.4%
Q3 2014+1.6%
Q2 2014+2.9%
Q1 2014-0.7%
Q4 2013+0.3%
Q3 2013+7.3%
Q2 2013-1.0%
Q1 2013+3.2%
Q4 2012-1.7%
Q3 2012-5.2%
Q2 2012-3.6%
Q1 2012+0.9%
Q4 2011-0.3%
Q3 2011-3.8%
Q2 2011-2.9%
Q1 2010+3.1%
Q1 2011+1.0%
Q4 2010+0.6%
Q3 2010-1.2%
Q3 2009-1.2%
Q2 2009-0.2%
Q2 2010-0.2%
Q4 2008-0.2%
Q4 2009-0.2%

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