Stepan Co. (SCL) Misses Q4 EPS by 5c; shares outlook

Stepan Co. (NYSE: SCL) reported Q4 EPS of $0.33, $0.05 worse than the analyst estimate of $0.38. Revenue for the quarter came in at $532.13 million versus the consensus estimate of $535.43 million.

OUTLOOK

\"As we look toward 2024, we believe volumes and margins will improve due to continued recovery in Rigid Polyols demand, growth in Surfactant volumes driven by contracted business along with the expected recovery of the agricultural business in the second half of the year, and lower raw material costs across the business versus 2023,\" said Scott Behrens, President and Chief Executive Officer. \"Our previously shared cost reduction activities to deliver $50 million in pre-tax savings in 2024 will help offset inflationary pressures, increased expenses associated with the commissioning of our new Pasadena alkoxylation assets and higher incentive-based compensation expenses. These cost reduction activities are centered around the workforce productivity actions already taken and on focused programs to improve operational performance across our manufacturing network. We believe continued market recovery, executing our strategic initiatives, and the aforementioned cost reductions, should position us to deliver adjusted EBITDA growth and positive free cash flow in 2024. We remain confident in our long-term growth and innovation initiatives.\"

For earnings history and earnings-related data on Stepan Co. (SCL) click here.

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