NYSE$TSEOF

Trinseo Plc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Trinseo's third quarter results were reported, with net income significantly exceeding the prior year due to higher margins and cost reduction.

Trinseo reported Q3 2020 financial results with net sales of $752 million, a decrease of 18% year-over-year. Net income was $106 million, and Adjusted EBITDA was $102 million, both exceeding the prior year. The company saw a strong recovery in demand across several sectors, including automotive and construction.

  • Net income reached $106 million, with a diluted EPS of $2.75.
  • Adjusted EBITDA stood at $102 million, which included a $2 million favorable impact from net timing, and Adjusted EPS was $2.87.
  • Cash from operations in the third quarter was reported as $52 million, with a Free Cash Flow of $39 million, and cash and cash equivalents at quarter-end totaled $503 million.
  • Market conditions improved, and actions taken in response to COVID-19, such as reduced capital spending and operating expenses, contributed to the positive results.

Headline financials

Total Revenue

$752M

Previous: $922M-18.4%
EPS (adj)

$2.87

Previous: $0.67+328.4%
Adjusted EBITDA

$102M

Previous: $88M+15.9%
Free Cash Flow

$106M

Previous: $22.5M+370.2%
Net Income

$106M

Previous: $22.5M+370.2%
Operating Income

$67.9M

Previous: $43.3M+56.8%
Gross Profit

$103M

Previous: $85.2M+21.2%
Cash & Equivalents

$503M

Previous: $483M+4.1%
Total Assets

$2.65B

Previous: $2.73B-2.9%
Stock-Based Comp

$2.7M

Previous: $3.1M-12.9%

Revenue & EPS history

Trinseo · Revenue · Quarterly

$752M

Q3 2020-18.4%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Trinseo · $183M total across 1 segment · Q3 2020

  • Latex Binders
    $183M

Forward guidance

Trinseo anticipates demand momentum to continue through October and is cautiously optimistic that this trend will extend to the year's end. The company expects to maintain a strong balance sheet and liquidity, enabling further investments in high-margin applications and polystyrene circularity.

Tailwinds

  • Demand momentum continued in October
  • Company is cautiously optimistic that the demand will continue through the end of the year
  • Expects to end the year with a strong balance sheet
  • Expects to end the year with a strong liquidity position
  • Will continue to invest in areas that will provide value to our shareholders

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-1.4%

Avg return

Earnings day

-3.4%

Avg return

5 days after

-5.3%

Avg return

30 days after

51%

25 / 49 earnings

Positive

+16.0%

Q1 2024

Best reaction

-34.9%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-16.7%-16.7%-91.7%
Q4 2025+0.0%+0.0%-3.6%
Q3 2025-2.4%-9.5%-47.1%
Q1 2025-34.9%-42.0%-27.7%
Q4 2024+6.9%+18.5%-11.2%
Q3 2024-8.9%-13.4%+5.9%
Q2 2024-3.2%-3.6%+44.2%
Q1 2024+16.0%-7.2%-3.4%
Q4 2023-16.8%-18.0%-10.8%
Q3 2023+2.9%-6.2%+1.0%
Q2 2023-8.4%-18.0%-35.7%
Q1 2023+2.4%-13.9%-17.0%
Q4 2022-12.7%+7.8%-5.6%
Q3 2022+8.5%+20.6%+20.0%
Q2 2022-12.9%-7.5%-26.0%
Q1 2022-5.8%-12.1%-4.4%
Q4 2021+9.0%+9.0%-9.3%
Q3 2021-4.2%-5.2%-11.5%
Q2 2021-7.1%-3.3%-4.1%
Q1 2021+0.3%+0.0%-1.3%
Q4 2020-1.0%+6.2%+25.1%
Q3 2020+15.5%+23.0%+35.4%
Q2 2020-11.6%-12.8%+3.2%
Q1 2020+3.8%+6.9%+38.4%
Q4 2019-3.5%-2.7%-34.2%
Q3 2019+2.8%+4.0%-19.0%
Q2 2019-7.3%-9.1%+10.1%
Q1 2019+7.3%+2.8%-14.9%
Q4 2018+0.6%+4.4%-5.1%
Q3 2018-6.6%-24.7%-22.3%
Q2 2018+2.1%+7.7%+5.7%
Q1 2018+0.7%+1.4%+2.8%
Q4 2017-2.7%+1.0%-6.8%
Q3 2017+1.5%-0.1%-0.2%
Q2 2017-7.7%-9.9%-3.5%
Q1 2017-8.2%-6.7%-2.1%
Q4 2016-0.5%-0.8%-7.8%
Q3 2016-4.3%-5.1%+12.4%
Q2 2016-0.7%+2.1%+16.2%
Q1 2016+3.4%
Q4 2015+6.3%
Q3 2015+3.1%
Q2 2015+7.6%
Q1 2014+2.5%
Q1 2015+7.7%
Q4 2014+1.5%
Q3 2014+1.0%
Q4 2013+2.1%
Q2 2014+2.4%
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q1 2011
Q2 2010
Q1 2010

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