Core Viewpoint - Ashland (ASH) reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, but down from $0.45 per share a year ago, indicating a 40% earnings surprise [1][2] Financial Performance - The company posted revenues of $405 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.52% and down from $473 million year-over-year [2] - Over the last four quarters, Ashland has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Ashland shares have declined approximately 0.5% since the beginning of the year, while the S&P 500 has gained 2.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.29 on revenues of $515.77 million, and for the current fiscal year, it is $4.31 on revenues of $1.95 billion [7] Industry Context - The Chemical - Specialty industry, to which Ashland belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the outlook for the industry can materially affect stock performance [5][8]

Financial Performance - First quarter sales were $405 million, down 14% from $473 million in the prior-year quarter, with Portfolio Optimization reducing sales by approximately $50 million or 11%[3] - Loss from continuing operations was $166 million, or a loss of $3.51 per diluted share, compared to income of $28 million in the prior-year quarter[5] - Adjusted EBITDA was $61 million, down 13% from $70 million in the prior-year quarter, primarily driven by Portfolio Optimization and increased expenses[5] - Life Sciences sales declined 33% year-over-year to $134 million, primarily due to Portfolio Optimization and reduced pharma sales volumes[9] - Personal Care sales increased 4% year-over-year to $134 million, with a 6% increase excluding Portfolio Optimization impacts[12] - Specialty Additives sales were $115 million, down 6% from the prior-year quarter, primarily due to Portfolio Optimization[14] - Adjusted operating income for Personal Care was $12 million, compared to $2 million in the prior-year quarter, reflecting strong performance[13] - Ashland reported a net loss of $165 million for the three months ended December 31, 2024, compared to a net income of $26 million in the same period of 2023[40] - The diluted earnings per share from continuing operations was $(3.51) for Q4 2024, a significant decline from $0.54 in Q4 2023[40] - Total sales decreased by 14.4% to $405 million in Q4 2024, down from $473 million in Q4 2023[40] - Operating loss for the quarter was $(179) million, compared to an operating loss of $(18) million in the prior year[40] - Adjusted EBITDA for Ashland Inc. was $61 million in Q4 2024, down 13% from $70 million in Q4 2023[44] - The Life Sciences segment's adjusted EBITDA decreased to $28 million in Q4 2024 from $48 million in Q4 2023, reflecting a 42% decline[44] - The Personal Care segment saw an increase in adjusted EBITDA to $30 million in Q4 2024, up from $22 million in Q4 2023, marking a 36% growth[44] - Specialty Additives reported an adjusted EBITDA of $13 million in Q4 2024, compared to $6 million in Q4 2023, representing a 117% increase[44] Cash Flow and Assets - Cash flows used by operating activities totaled $30 million, compared to cash flows provided of $201 million in the prior-year quarter[7] - Cash and cash equivalents decreased to $219 million at the end of Q4 2024, down from $300 million at the end of Q3 2024[41] - Total assets decreased to $5.231 billion as of December 31, 2024, from $5.645 billion as of September 30, 2024[41] - Free cash flows for Ashland Inc. were negative $53 million in Q4 2024, a significant decline from positive $165 million in Q4 2023[48] - Operating cash flow conversion was 18% in Q4 2024, a sharp decrease from 773% in Q4 2023[48] - Ashland's total liabilities decreased to $2.639 billion as of December 31, 2024, from $2.777 billion as of September 30, 2024[41] Strategic Initiatives - The company signed a definitive agreement to sell its Avoca business, part of its portfolio optimization strategy[3] - The company plans to focus on restructuring and optimization efforts to improve future performance[46] Key Items and Adjustments - The company incurred a loss of $183 million on acquisitions and divestitures in Q4 2024, compared to a loss of $2 million in the same quarter of the previous year[40] - The company incurred key items totaling $208 million before tax, including an Avoca impairment of $183 million[53] - Adjusted operating income (non-GAAP) for Q4 2024 was $11 million, down from $16 million in Q4 2023[51] - Total key items after tax amounted to $3.50 million in Q4 2024, compared to $(0.42) million in Q4 2023[57] - Key items before tax included an Avoca impairment of $3.89 million in Q4 2024, with no equivalent in Q4 2023[57] - The tax effect of key items was $(1.07) million in Q4 2024, compared to $(0.02) million in Q4 2023[57] - Amortization expense adjustment (net of tax) was $0.29 million for Q4 2024, slightly down from $0.33 million in Q4 2023[57] - Uncertain tax positions contributed $0.02 million to key items in Q4 2024, with no contribution in Q4 2023[57] - Other and tax reform related activity resulted in a $0.15 million impact in Q4 2024, compared to a $(0.47) million impact in Q4 2023[57] - Adjusted Diluted EPS from Continuing Operations (excluding intangibles amortization expense) was $0.28 million in Q4 2024, down from $0.45 million in Q4 2023[57]

Sales of $405 million, down 14 percent from the prior-year quarterPreviously announced carboxymethylcellulose (CMC), methylcellulose (MC) and nutraceuticals portfolio optimization initiatives (collectively, "Portfolio Optimization") reduced overall sales by approximately $50 million or 11 percent versus the prior-year quarter. Excluding Portfolio Optimization, sales declined 3 percent versus prior-year quarterLoss from continuing operations of $166 million, or loss of $3.51 per diluted shareAdjusted income ...

Analysts on Wall Street project that Ashland (ASH) will announce quarterly earnings of $0.20 per share in its forthcoming report, representing a decline of 55.6% year over year. Revenues are projected to reach $439.38 million, declining 7.1% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 5.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Befo ...

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Wall Street expects a year-over-year decline in earnings on lower revenues when Ashland (ASH) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on January 28, 2025, might help the stock move higher if these key numbers are better than expecta ...

Ashland Inc (ASH) is a Zacks Rank #5 (Strong Sell) after the company missed the Zacks Consensus Estimate when the last reported. The company is in the specialty chemicals space and services many industries such as the automotive and construction sectors. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.Description                        Ashland, Inc. is an additives and specialty ingredients company, which engages in the provision of architectural coatin ...

WILMINGTON, Del., Jan. 14, 2025 (GLOBE NEWSWIRE) -- Ashland Inc. (NYSE: ASH) today announced plans to issue its first-quarter fiscal 2025 earnings release at approximately 5 p.m. ET on Tuesday, January 28, 2025. The company’s live webcast with securities analysts will include an executive summary and detailed remarks. The live webcast will take place at 9 a.m. ET on Wednesday, January 29. Simultaneously, the company will post a slide presentation in the Investor Relations section of its website at http://in ...

Stocks Added to Zacks Rank 5 (Strong Sell) List - 89bio Inc (ETNB) is a clinical-stage biopharmaceutical company with a 38 8% downward revision in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Altice USA Inc (ATUS) is a broadband communications and video services provider with a 250% downward revision in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Ashland Inc (ASH) is an additives and specialty ingredients provider with a 16 2% downward revision in the Zacks Consensus Estimate for current year earnings over the last 60 days [2]

Wilmington, Del., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Ashland Inc. (NYSE:ASH) announced today that it has signed a definitive agreement to sell its Avoca business to Mane. The transaction is expected to close in the calendar first quarter 2025, subject to the satisfaction of customary closing conditions. Ashland's Avoca business supplies Sclareolide, a fragrance fixative, and a range of contract manufacturing capabilities from two production facilities in North Carolina and Wisconsin.  The Avoca business line ...