PQ Group Holdings Inc. (PQG) Tops Q3 EPS by 1c, Revenues Beat; Raises FY18 Revenue/FCF Guidance

PQ Group Holdings Inc. (NYSE: PQG) reported Q3 EPS of $0.26, $0.01 better than the analyst estimate of $0.25. Revenue for the quarter came in at $427.2 million versus the consensus estimate of $413.21 million.

• Sales up 9.0% to $427.2 million; Net income of $14.2 million with Diluted EPS of $0.11
• Adjusted Net Income of $35.4 million with Adjusted Diluted EPS of $0.26; Adjusted EBITDA of $118.1 million
• Net cash provided by operating activities of $115.9 million and quarterly adjusted free cash flow of $91.0 million, leading to $80 million of debt repayment
• 2018 outlook: Raising adjusted free cash flow expectation to $125 million to $140 million, a yield of ~6%; on track for additional debt paydown by year-end

“While we delivered solid top line growth this quarter driven by overall healthy demand, our financial results were impacted by unfavorable sales mix and higher operating expenses in Performance Materials,” commented Belgacem Chariag, PQ President and Chief Executive Officer. “Despite this result, we generated strong free cash flow during the quarter and our free cash flow outlook for the year has improved. Our debt repayment plans for this year are on track and we remain committed to our deleveraging goals.”

Chariag added, “I am very excited by PQ’s high niche specialty businesses and the potential for profitable growth. Since joining the Company as CEO in August, the team and I have been focused squarely on the three key drivers of shareholder value - growth, effective capital allocation and free cash flow.”

GUIDANCE:

PQ Group Holdings Inc. sees FY2018 revenue of $1.58-1.6 billion, versus the consensus of $1.58 billion.

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

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