PQ Group Holdings Inc. (PQG) Reports In-Line Q2 EPS, Revenues Beat; Offers FY18 Revenue Outlook

PQ Group Holdings Inc. (NYSE: PQG) reported Q2 EPS of $0.28, in-line with the analyst estimate of $0.28. Revenue for the quarter came in at $434.7 million versus the consensus estimate of $417.55 million.

• Sales up 11.7% to $434.7 million
• Net income of $15.8 million or Diluted EPS of $0.12; Adjusted Net Income of $37.2 million or Adjusted Diluted EPS of $0.28
• Adjusted EBITDA up 5.0% to $128.9 million for an Adjusted EBITDA margin of 26.6%
• 2018 outlook reaffirmed: Sales of $1,545 million to $1,575 million; Adjusted EBITDA of $470 million to $490 million; and Free Cash Flow of $120 million to $140 million
• On track for debt paydown in second half 2018

“Our solid second quarter performance demonstrates the strength of our competitive positions and diverse product portfolio, which enable us to capture the underlying strong demand growth trends in nearly all of our end markets,” commented Jim Gentilcore, Executive Chairman of PQ. “We remain on track with our outlook for strong free cash flow generation with a primary focus on deleveraging in the second half of 2018.”

GUIDANCE:

PQ Group Holdings Inc. sees Q3 2018 revenue of $1.545-1.575 billion, versus the consensus of $1.57 billion.

• Sales of $1,545 million to $1,575 million, up 5% to 7%
• Adjusted EBITDA of $470 million to $490 million, up 4% to 8%
• Depreciation and Amortization of $185 million to $190 million, up from $175 million to $185 million, and excludes $12 million to $14 million for 50% share in Zeolyst Joint Venture
• Interest expense of $120 million to $130 million
• Capital expenditures of $150 million to $155 million
• Effective tax rate of approximately 30%, up from mid-20% range, excluding the non-cash impact of tax reform
• Free cash flow of $120 million to $140 million

For earnings history and earnings-related data on PQ Group Holdings Inc. (PQG) click here.

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