Quaker Chemical (KWR) Tops Q3 EPS by 59c

November 5, 2020 5:12 PM EST

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Quaker Chemical (NYSE: KWR) reported Q3 EPS of $1.53, $0.59 better than the analyst estimate of $0.94. Revenue for the quarter came in at $367.2 million versus the consensus estimate of $331.23 million.

Michael F. Barry, Chairman, Chief Executive Officer and President, "We experienced a strong rebound in our business in the third quarter compared to the second quarter with sales growing by 28% and adjusted EBITDA nearly doubling. All four business segments had good sequential growth as our end markets improved from the very poor second quarter conditions, especially in the Americas and EMEA. Our adjusted EBITDA growth continued to benefit from our estimated cost synergies of $17 million in the quarter as well as estimated market share gains of 2% in the quarter. Our cash flow generation continues to be strong as we reduced our net debt by 7% or $58 million this quarter."

Mr. Barry continued, "While we have seen a rebound in many of our end markets, we are still not back to where we would have expected our business to be when we started the year. Looking forward, we expect gradual sequential improvement in our markets as we progress through the next two years, although given the uncertainty in our operating environment, the improvement by quarter is hard to predict. For the fourth quarter we expect our adjusted EBITDA to be in the range of our third quarter result. For the full year, we now expect our adjusted EBITDA to exceed $215 million. Overall, our integration synergies, additional cost savings actions, improvement in product margins, and good cash flows are expected to continue to help us during this challenging time. As we look forward to 2021, we expect to achieve a 20+% increase in our adjusted EBITDA as we complete our integration cost synergies, continue to take share in the marketplace and benefit from a projected gradual rebound in demand."

For earnings history and earnings-related data on Quaker Chemical (KWR) click here.

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