PQ Group Holdings Inc. (PQG) Tops Q4 EPS by 4c, Revenues Beat; Offers FY19 EPS/Revenue Guidance Below Consensus

PQ Group Holdings Inc. (NYSE: PQG) reported Q4 EPS of $0.17, $0.04 better than the analyst estimate of $0.13. Revenue for the quarter came in at $380.1 million versus the consensus estimate of $365.9 million.

• Sales increased 6% to $380.1 million for the fourth quarter and 9% to $1,608.2 million for the year;
• Net income of $28.2 million for the fourth quarter and $58.3 million for the year;
• Adjusted EBITDA of $109.1 million for the fourth quarter and $464.0 million for the year;
• Operating cash flow higher by 50% to $248.6 million for the year; Adjusted free cash flow up $109.4 million for the year leading to approximately $135 million debt reduction for the year;
• 2019 Guidance: Sales of $1,640 million to $1,670 million; Adjusted EBITDA of $470 million to $485 million; Adjusted free cash flow of $125 million to $145 million; and
• Announcing realignment into four distinct business units including Catalysts, Performance Chemicals, Performance Materials, and Refining Services

“In the fourth quarter, we delivered on both pricing and volume growth plans that drove a solid finish to the year. We generated strong operating and adjusted free cash flow for 2018 that was all allocated to debt reduction, achieving meaningful progress towards our deleveraging target,” commented Belgacem Chariag, PQ President and Chief Executive Officer. “Despite more modest macroeconomic trends in 2019, we expect growth in all our product groups driven by continued underlying secular demand.”

Chariag also added, “Since our last quarter earnings call, we advanced our strategic review to make our business portfolio simpler and stronger. As a first step in this process, we are delayering our business structure effective March 1 to empower our four strong business units, creating an environment of focus and accountability to drive additional efficiencies.”

GUIDANCE:

PQ Group Holdings Inc. sees FY2019 EPS of $0.75-$0.93, versus the consensus of $1.01. PQ Group Holdings Inc. sees FY2019 revenue of $1.64-1.67 million, versus the consensus of $1.68 million.

• Adjusted EBITDA of $470 million to $485 million
• Adjusted free cash flow of $125 million to $145 million

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

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• CaliberCos Inc (CWD) Misses Q2 EPS by 43c; Offers Guidance
• Silexion Therapeutics (SLXN) Tops Q2 EPS by 793c