Koppers Holdings (KOP) Misses Q4 EPS by 8c, Beats on Revenues; Offers FY18 EPS/Revenues Guidance Above Consensus

Koppers Holdings (NYSE: KOP) reported Q4 EPS of $0.40, $0.08 worse than the analyst estimate of $0.48.

2018 Outlook

Koppers expects that its 2018 sales will be approximately $1.7 billion, reflecting a generally positive economic environment as well as market share growth. On an adjusted basis, the company is targeting 2018 adjusted EBITDA of approximately $210 million. Accordingly, the adjusted EPS for 2018 is targeted to be in the range of $3.90 and $4.10.

Commenting on the forecast, Mr. Ball said, "In 2018, we expect to achieve record profitability driven by a stronger overall pricing environment, particularly in China, and an improved demand outlook for our water-borne and carbon-based products, even with headwinds from higher raw material costs. In addition, we still expect to see improvement in our treating business serving the North American rail industry in 2018, albeit likely in the fourth quarter instead of mid-year as we had previously anticipated. There may be further upside to our projections if market conditions in China continue to be favorable through the balance of the year"

Mr. Ball continued, "In anticipation that the past year\'s progress in reducing our balance sheet leverage will be ongoing, we continue to actively seek growth opportunities to strengthen our global leadership position in wood treatment technologies. At the same time, we expect to invest $55 million to $65 million in capital expenditures to complete certain capacity expansion projects as well as improve the safety and reliability of our existing infrastructure."

GUIDANCE:

Koppers Holdings sees FY2018 EPS of $3.90-$4.10, versus the consensus of $3.89. Koppers Holdings sees FY2018 revenue of $1.7 billion, versus the consensus of $1.46 billion.

For earnings history and earnings-related data on Koppers Holdings (KOP) click here.

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