NYSE$SXT

Sensient Technologies Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Sensient reported slight revenue and operating income growth in Q4 2022, with diluted EPS increasing to $0.69.

Sensient Technologies Corporation reported a revenue increase of 2.4% to $348.7 million in Q4 2022 compared to $340.4 million in Q4 2021. The operating income also saw a slight increase to $41.2 million from $40.4 million in the previous year. Reported diluted earnings per share increased to $0.69 compared to $0.65 in the prior year.

  • Consolidated revenue increased by 2.4% to $348.7 million in Q4 2022.
  • Operating income rose to $41.2 million, a 2.0% increase year-over-year.
  • Diluted earnings per share increased to $0.69, compared to $0.65 in the prior year.
  • Foreign currency translation negatively impacted revenue by approximately 3% and EPS by 6%.

Headline financials

Total Revenue

$349M

Previous: $340M+2.4%
EPS (adj)

$0.64

Previous: $0.73-12.3%
Total Revenue Change

2.4%

Previous: 1.7%+41.2%
Flavors & Extracts Revenue Change

0.8%

Previous: -6.1%+113.1%
Color Revenue Change

7.8%

Previous: 14.4%-45.8%
Asia Pacific Revenue Change

-3.3%

Previous: 11.1%-129.7%
Capital Expenditures

$27.6M

Previous: $23.2M+19.2%
Free Cash Flow

-$30.4M

Previous: $5.89M-616.9%
Net Income

$29.1M

Previous: $27.2M+6.9%
Operating Income

$41.2M

Previous: $40.4M+2.0%
Gross Profit

$112M

Previous: $112M-0.8%
Cash & Equivalents

$20.9M

Previous: $25.7M-18.7%
Total Assets

$1.98B

Previous: $1.75B+13.5%
Stock-Based Comp

$3.66M

Previous: $3.14M+16.5%

Revenue & EPS history

Sensient · Revenue · Quarterly

$349M

Q4 2022+2.4%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Sensient · $361M total across 3 segments · Q4 2022

  • Flavors & Extracts
    $179M+0.8%
  • Color
    $148M+7.8%
  • Asia Pacific
    $34.6M-3.3%

Forward guidance

Sensient expects 2023 full year GAAP diluted earnings per share to be flat to low-single digit growth compared to our 2022 reported GAAP diluted earnings per share of $3.34. The Company expects 2023 revenue to grow at a mid-single digit rate on a local currency basis compared to the Company’s 2022 revenue.

Tailwinds

  • Company expects 2023 revenue to grow at a mid-single digit rate on a local currency basis compared to the Company’s 2022 revenue.
  • Company expects 2023 diluted earnings per share to be flat to low-single digit growth on a local currency basis compared to the Company’s 2022 adjusted diluted earnings per share of $3.29.
  • Company expects 2023 adjusted EBITDA to grow at a mid-to-high single digit rate on a local currency basis compared to the Company’s 2022 adjusted EBITDA.
  • Based on current exchange rates, the Company expects foreign exchange rates to be modestly favorable for the full year.
  • The Company does not anticipate any divestiture related costs, operational improvement plan costs, or results of divested business in 2023 at this time.

Headwinds

  • Sensient expects 2023 full year GAAP diluted earnings per share to be flat to low-single digit growth compared to our 2022 reported GAAP diluted earnings per share of $3.34.
  • Company expects its 2023 diluted earnings per share to be impacted by higher interest rates and a higher tax rate.
  • Company currently expects interest expense to increase by approximately $11 million ($0.20 per diluted share) in 2023 compared to the Company’s 2022 full year interest expense of $14.5 million.
  • Company also expects its full year 2023 tax rate to be approximately 25%.
  • Company expects foreign exchange rates to be a headwind for the beginning of the year.

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 2022

Historical avgQ4 2022

-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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