NYSE$SXT

Sensient Technologies Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Sensient reported an increase in revenue and operating income, driven by Flavors & Extracts Group's strong performance, while growth in food and pharmaceutical color sales was offset by lower personal care revenue.

Sensient Technologies Corporation reported consolidated revenue of $323.6 million, a 1.9% increase compared to the previous year. Operating income rose to $41.2 million, and diluted earnings per share reached 78 cents. The Flavors & Extracts Group showed strong revenue and profit growth, while the Color Group faced challenges due to lower personal care revenue.

  • Consolidated revenue increased by 1.9% to $323.6 million.
  • Operating income rose by 6.1% to $41.2 million.
  • Diluted earnings per share increased to 78 cents, up from 75 cents in the previous year.
  • Flavors & Extracts Group reported a revenue increase of 9.1%.

Headline financials

Total Revenue

$324M

Previous: $318M+1.9%
EPS (adj)

$0.77

Previous: $0.75+2.7%
Total Revenue Change

1.9%

No prior period
Flavors & Extracts Revenue Change

9.1%

No prior period
Color Revenue Change

-8.3%

No prior period
Asia Pacific Revenue Change

2.0%

No prior period
Capital Expenditures

-$34M

Previous: -$26.1M-30.4%
Free Cash Flow

-$1.1M

Previous: $5.8M-119.0%
Net Income

$32.9M

Previous: $31.9M+3.3%
Operating Income

$41.2M

Previous: $38.8M+6.1%
Gross Profit

$106M

Previous: $102M+3.2%
Cash & Equivalents

$26.9M

Previous: $34.4M-21.9%
Total Assets

$1.71B

Previous: $1.78B-3.6%
Stock-Based Comp

$1.36M

Previous: $339K+299.7%

Revenue & EPS history

Sensient · Revenue · Quarterly

$324M

Q3 2020+1.9%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Sensient · $330M total across 3 segments · Q3 2020

  • Flavors & Extracts
    $183M+9.1%
  • Color
    $116M-8.3%
  • Asia Pacific
    $30.7M+2.0%

Forward guidance

The Company reconfirms its previously issued diluted earnings per share guidance for 2020 of $2.10 to $2.35. The Company also reconfirms its previously issued 2020 adjusted diluted earnings per share guidance of $2.60 to $2.80, which excludes divestiture & other related costs, operational improvement plan costs, the results of the operations divested and to be divested, and foreign currency impacts.

Tailwinds

  • Reconfirms diluted earnings per share guidance for 2020 of $2.10 to $2.35.
  • Reconfirms adjusted diluted earnings per share guidance of $2.60 to $2.80.
  • Confirms low to mid-single digit revenue growth in 2020 on a local currency basis, excluding divested revenues.
  • Expects 2020 Adjusted EBITDA to grow at a low to mid-single digit rate.
  • Adjusted Operating Income is expected to be flat to down at a low-single digit rate on a local currency basis.

Headwinds

  • Full year guidance includes approximately 5 cents of foreign currency headwinds.
  • Adjusted Operating Income will be impacted by higher non-cash performance-based compensation.
  • The full impacts of the ongoing COVID-19 pandemic remain uncertain.
  • Guidance is based upon current trends and the effects of COVID-19 to date.
  • COVID-19 pandemic may impact the business.

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 2020

Historical avgQ3 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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