Ingevity (NYSE: NGVT) reported Q1 EPS of $0.72, $0.09 better than the analyst estimate of $0.63. Revenue for the quarter came in at $235.2 million versus the consensus estimate of $231.76 million.

• Net sales of $235.2 million were up about 8 percent versus the prior year quarter’s sales of $218.5 million.
• Net income of $35.8 million was up 56 percent versus net income in the prior year quarter of $23.0 million; net income as a percentage of sales was 15.2 percent, compared to net income as a percentage of sales of 10.5 percent in the prior year quarter
• Diluted earnings per share were $0.72
• Adjusted EBITDA of $67.1 million were up about 34 percent compared to first quarter 2017 adjusted EBITDA of $50.2 million; diluted adjusted earnings per share were $0.79
• Adjusted EBITDA margin of 28.5 percent increased 550 basis points versus first quarter 2017
• Company narrows and raises mid-point for fiscal year 2018 sales and adjusted EBITDA guidance

Outlook

Ingevity narrowed and raised the mid-point for its fiscal year 2018 guidance for sales from between $1.07 billion and $1.13 billion to between $1.10 billion and $1.13 billion. It also narrowed and raised the mid-point for its guidance for 2018 adjusted EBITDA from between $285 million and $305 million to between $293 million and $307 million.

“Three months in, we feel we have good line of sight on the year,” Wilson said. “We’re executing our businesses according to plan. We are focused on efficiently integrating the G-P pine chemicals acquisition, capturing the benefits of improving market conditions in Performance Chemicals, preparing for growing global demand in Performance Materials, and turning in another strong performance in 2018.”

For earnings history and earnings-related data on Ingevity (NGVT) click here.