Stepan Co. (SCL) Tops Q1 EPS by 17c

Stepan Co. (NYSE: SCL) reported Q1 EPS of $1.36, $0.17 better than the analyst estimate of $1.19. Revenue for the quarter came in at $468.27 million versus the consensus estimate of $461.7 million.

Outlook

"After a record first quarter, we remain optimistic about the balance of the year. We believe that benefits from our enhanced internal efficiencies, continued growth in our core polymer markets and our product and end-market diversification efforts should positively impact 2017. Conversely, higher raw material costs may pressure margins. Overall, we believe earnings for the year should grow," said F. Quinn Stepan, Jr., Chairman, President and Chief Executive Officer.

First Quarter Highlights

• Reported net income was a record $31.9 million, or $1.37 per diluted share versus $27.9 million, or $1.22 per diluted share, in the prior year. Adjusted net income* was a record $31.7 million, or $1.36 per diluted share versus $29.7 million, or $1.30 per diluted share, in the prior year.
• Surfactant operating income was a record $38.2 million versus $37.2 million in the prior year. This increase was primarily attributable to lower manufacturing costs, mostly resulting from previous actions taken to close plants in Canada and Brazil. Surfactant sales volume was down 7% from the prior year.
• Polymer operating income was $21.4 million versus $22.2 million in the prior year. This decrease was mostly attributable to higher costs associated with the new production facility in China and higher raw material costs. Polymer sales volume was up 8% versus prior year.
• Specialty Product operating income was $1.3 million versus $2.3 million in the prior year. This decrease was primarily attributable to order timing differences within our pharmaceutical and flavor business.

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

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