Ingevity (NGVT) Tops Q2 EPS by 10c, Beats on Revenues; Boosts FY18 EBITDA Outlook; Reaffirms FY18 Revenue Views

Ingevity (NYSE: NGVT) reported Q2 EPS of $1.10, $0.10 better than the analyst estimate of $1.00. Revenue for the quarter came in at $308.6 million versus the consensus estimate of $305.71 million.

• Net sales of $308.6 million were up more than 18 percent versus the prior year quarter’s sales of $260.3 million
• Net income of $52.2 million was up 46 percent versus net income in the prior year quarter of $35.8 million; net income as a percentage of sales was 16.9 percent, compared to net income as a percentage of sales of 13.8 percent in the prior year quarter; diluted earnings per share were $1.10
• Adjusted EBITDA of $89.4 million were up 33 percent compared to second quarter 2017 adjusted EBITDA of $67.2 million; diluted adjusted earnings per share were $1.12
• Adjusted EBITDA margin of 29.0 percent increased 320 basis points versus second quarter 2017
• Outstanding results driven by continued organic growth, Georgia-Pacific pine chemicals acquisition and excellent commercial and operational execution
• Company raises mid-point and narrows range for fiscal year 2018 adjusted EBITDA guidance and maintains guidance on revenues

Outlook

Ingevity raised the mid-point and narrowed the range for its fiscal year 2018 guidance for adjusted EBITDA from between $293 million and $307 million to between $302 million and $314 million. It maintained its guidance for sales of between $1.10 billion and $1.13 billion.

“We continue to feel very positive about the year,” said Wilson. “We are seeing the benefits of improving market conditions for both our basic materials and high-value added technologies and we are executing well.”

GUIDANCE:

Ingevity sees FY2018 revenue of $1.1-1.13 billion, versus the consensus of $1.11 billion.

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

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