NYSE$SXT

Sensient Technologies Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Sensient Technologies Corporation's Q4 2023 results were impacted by lower sales volumes and Portfolio Optimization Plan costs, resulting in a net loss.

Sensient Technologies Corporation reported a slight increase in revenue for Q4 2023, but operating income and earnings per share decreased significantly due to lower sales volumes and costs associated with the Portfolio Optimization Plan. The company is optimistic about 2024, expecting a return to volume growth and cost savings from the optimization plan.

  • Revenue increased slightly by 0.2% to $349.3 million, but decreased by 1.8% on a local currency basis.
  • Operating income declined significantly by 80.4% to $8.1 million due to Portfolio Optimization Plan costs.
  • The company recorded a loss per share of 14 cents, compared to earnings of 69 cents in Q4 2022.
  • A Portfolio Optimization Plan was initiated, expected to deliver $8 million to $10 million in annual cost savings once fully implemented.

Headline financials

Total Revenue

$349M

Previous: $349M+0.2%
EPS (adj)

$0.51

Previous: $0.64-20.3%
Capital Expenditures

-$20.2M

Previous: $27.6M-173.0%
Net Income

-$5.83M

Previous: $29.1M-120.0%
Operating Income

$8.06M

Previous: $41.2M-80.4%
Gross Profit

$99.8M

Previous: $112M-10.5%
Stock-Based Comp

$1.65M

Previous: $3.66M-55.0%

Revenue & EPS history

Sensient · Revenue · Quarterly

$349M

Q4 2023+0.2%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Sensient · $373M total across 3 segments · Q3 2023

  • Flavors & Extracts
    $191M+2.1%
  • Color
    $145M-4.3%
  • Asia Pacific
    $36.8M+4.4%

Forward guidance

Sensient expects 2024 diluted earnings per share to be between $2.80 and $2.90, including approximately 15 cents of Portfolio Optimization Plan costs. The company anticipates low-to-mid single-digit growth in revenue, adjusted EBITDA, and adjusted diluted earnings per share on a local currency basis.

Tailwinds

  • Revenue growth at a low-to-mid single-digit rate on a local currency basis.
  • Adjusted EBITDA growth at a low-to-mid single-digit rate on a local currency basis.
  • Adjusted diluted earnings per share growth at a low-to-mid single-digit rate on a local currency basis.
  • Diluted earnings per share to be between $2.80 and $2.90.
  • Full year 2024 tax rate to be between 24% and 25%.

Headwinds

  • Diluted earnings per share to be impacted by higher interest expense.
  • Interest expense is expected to increase by approximately $3 million ($0.05 per diluted share).
  • Guidance is based on current conditions and economic and market trends.
  • Guidance is subject to various risks and uncertainties.
  • Portfolio Optimization Plan costs are expected to impact diluted earnings per share by approximately 15 cents.

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 2023

Historical avgQ4 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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