NYSE$SXT

Sensient Technologies Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Sensient Technologies Corporation reported a revenue increase of 0.7% and a decrease in diluted earnings per share to 81 cents for the quarter ended June 30, 2023.

Sensient Technologies Corporation reported consolidated revenue of $374.3 million for the second quarter of 2023, a 0.7% increase compared to the previous year. However, operating income decreased to $51.6 million from $55.2 million, and diluted earnings per share fell to 81 cents from 92 cents.

  • Consolidated revenue increased by 0.7% to $374.3 million.
  • Operating income decreased by 6.6% to $51.6 million.
  • Diluted earnings per share decreased to 81 cents from 92 cents.
  • The company now expects 2023 full year GAAP diluted earnings per share to be down high single digits compared to our 2022 reported GAAP diluted earnings per share of $3.34.

Headline financials

Total Revenue

$374M

Previous: $372M+0.7%
EPS (adj)

$0.81

Previous: $0.92-12.0%
Total Revenue Change

0.7%

Previous: 10.7%-93.5%
Flavors & Extracts Revenue Change

-0.6%

Previous: 5.5%-110.9%
Color Revenue Change

2.7%

Previous: 17.3%-84.4%
Asia Pacific Revenue Change

-3.5%

Previous: 15.5%-122.6%
Capital Expenditures

-$45.1M

Previous: -$32.5M-39.0%
Free Cash Flow

-$11.1M

Previous: $6.18M-279.7%
Net Income

$34M

Previous: $38.6M-11.9%
Operating Income

$51.6M

Previous: $55.2M-6.6%
Gross Profit

$122M

Previous: $131M-6.7%
Cash & Equivalents

$36.5M

Previous: $25.3M+44.6%
Total Assets

$2.05B

Previous: $1.8B+13.5%
Stock-Based Comp

$2.5M

Previous: $4.53M-44.8%

Revenue & EPS history

Sensient · Revenue · Quarterly

$374M

Q2 2023+0.7%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Sensient · $385M total across 3 segments · Q2 2023

  • Flavors & Extracts
    $188M-0.6%
  • Color
    $160M+2.7%
  • Asia Pacific
    $36M-3.5%

Forward guidance

Sensient now expects 2023 full year GAAP diluted earnings per share to be down high single digits and continues to expect 2023 revenue to grow at a mid-single-digit rate on a local currency basis.

Tailwinds

  • Company continues to expect 2023 revenue to grow at a mid-single-digit rate on a local currency basis compared to the Company’s 2022 revenue.
  • Based on current exchange rates, the Company expects foreign exchange rates to be modestly favorable for the full year.
  • The Company’s guidance is based on current conditions and economic and market trends in the markets in which the Company operates
  • We do not anticipate any divestiture related costs, operational improvement plan costs, or results of divested business in 2023 at this time.
  • Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients.

Headwinds

  • Sensient now expects 2023 full year GAAP diluted earnings per share to be down high single digits compared to our 2022 reported GAAP diluted earnings per share of $3.34
  • Company now expects 2023 adjusted EBITDA to be down mid-single digits on a local currency basis compared to the Company’s 2022 adjusted EBITDA.
  • The Company expects its 2023 diluted earnings per share to be impacted by higher interest rates and a higher tax rate.
  • Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors concerning the Company’s operations and business environment.
  • Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company.

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 2023

Historical avgQ2 2023

-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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