Kraton Corporation (KRA) Tops Q2 EPS by 24c, Beats on Revenues

Kraton Corporation (NYSE: KRA) reported Q2 EPS of $0.82, $0.24 better than the analyst estimate of $0.58. Revenue for the quarter came in at $525.32 million versus the consensus estimate of $506.58 million.

2017 SECOND QUARTER SUMMARY

• Second quarter consolidated revenue of $525.3 million, up 15.5% compared to the second quarter 2016
• Second quarter consolidated net income of $25.5 million was up from $7.4 million in the second quarter 2016
• Second quarter Adjusted EBITDA(1) of $101.5 million, up 9.4% compared to the second quarter 2016
• Polymer segment Adjusted EBITDA(1) of $62.8 million, with an associated margin(2) of 18.7%, up $23.6 million or 60.2% compared to the second quarter 2016
• Polymer segment margin(2) up 690 basis points sequentially, reflecting expected recovery following significant first quarter 2017 raw material cost inflation
• Chemical segment Adjusted EBITDA(1) of $38.7 million with an associated margin(2) of 20.3%, up $5.1 million sequentially, with a 240 basis point improvement in associated margin(2)
• Sequential increase reflects improvement in tall oil fatty acid pricing, stabilization of market dynamics associated with hydrocarbon-based C5 alternatives, and incremental synergy capture
• Delivered incremental cost reductions and synergies of $13.3 million, expect full realization of $65 million of transaction synergies by year-end 2017, one year ahead of plan

For earnings history and earnings-related data on Kraton Corporation (KRA) click here.

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