The market expects Stepan Co. (SCL) to deliver flat earnings compared to the year-ago quarter on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be ...

Economic Overview - The S&P 500 is currently below its all-time highs, influenced by a disappointing jobs report and fears regarding the U.S. economy's condition, despite expectations of a 0.50% rate reduction by the Federal Reserve [1] - There is a growing concern that companies with poor financials will experience significant declines if market conditions worsen, prompting a focus on the fundamentals of growth stocks [2] Company Performance Analysis Silicom Ltd. (SILC) - Silicom Ltd. experienced a revenue decline from $150.6 million to $124.1 million in 2023, with a net loss of $0.44 per share compared to a profit of $2.73 per share the previous year, marking a 116% drop [5] - Q2 FY2024 results showed further revenue decline from $38.1 million to $14.5 million, with a loss of $0.25 per share compared to a profit of $0.56 per share in the same quarter last year, attributed to excess customer inventory and a slowdown in global demand [6] - The stock is down 34% year-to-date and is considered a candidate for growth stocks to sell [7] Stepan Company (SCL) - Stepan Company reported a 16% year-over-year decrease in net sales in 2023, with operating income falling by 72% and net income decreasing by 73% [9] - Q2 FY2024 results indicated a 10% drop in net sales and a 19% decrease in net income year-over-year, impacted by rising corporate expenses and competitive pressures [10] - Despite analysts rating SCL stock as a buy, the declining financial metrics suggest it may also belong on a sell list [11] Schneider National (SNDR) - Schneider National's FY2023 results showed a 17% decrease in operating revenues and a 51% drop in income from operations, with net income falling by 48% [12] - Q2 FY2024 results revealed a 5% decrease in operating revenue, but a significant 69% contraction in net income due to increased spending [12] - Although Wall Street analysts rate SNDR stock as a consensus buy, the deteriorating financials indicate it may be prudent to consider it for a sell list [13]

Stepan Co. (SCL) came out with quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -38.81%. A quarter ago, it was expected that this specialty chemicals company would post earnings of $0.35 per share when it actually produced earnings of $0.64, delivering a surprise of 82.86%. Stepan Co. Shares have lo ...

Exhibit 99.1 Stepan Reports Second Quarter 2024 Results Northbrook, Illinois, July 31, 2024 -- Stepan Company (NYSE: SCL) today reported: Second Quarter 2024 Highlights First Half 2024 Highlights "Second quarter earnings were significantly impacted by higher operational expenses at our Millsdale site, start up costs related to our new Pasadena investment and a criminal social engineering event that targeted one of our Asia subsidiaries, leading to unexpected expense in the quarter. We are actively investiga ...

NORTHBROOK, Ill., July 31, 2024 /PRNewswire/ -- Stepan Company (NYSE: SCL) today reported: Corporate Profile Headquartered in Northbrook, Illinois, Stepan utilizes a network of modern production facilities located in North and South America, Europe and Asia. Certain information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange ...

Anchiy Mixed results Author - SEC EDGAR Data Even though net income and adjusted net income fell year over year, the company benefited from margin expansion. This was less visible when we focus on net profits and adjusted net profits. But the company's adjusted operating cash flow margin improved from 6.45% to 8.20%, while its EBITDA margin grew from 7.48% to 9.29%. As you can tell from the chart above, these margin improvements mark a turnaround compared to what the company saw from 2022 to 2023. We do kno ...

NORTHBROOK, Ill., July 10, 2024 /PRNewswire/ -- Stepan Company (NYSE: SCL) will issue its second quarter 2024 earnings results on Wednesday, July 31, 2024 at approximately 7:00 a.m. ET (6:00 a.m. CT). Supporting slides will be posted at approximately the same time on the Investors/Presentations page at www.stepan.com. The Company will hold a conference call to discuss and answer questions about its financial and operational performance on the same day at 9:00 a.m. ET (8:00 a.m. CT). The call can be accessed ...

[Part I - Financial Information](index=2&type=section&id=Part%20I%20FINANCIAL%20INFORMATION) This section presents the company's financial statements and related disclosures [Item 1 - Financial Statements](index=2&type=section&id=Item%201%20-%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, showing decreased net sales and net income primarily due to lower selling prices Condensed Consolidated Statements of Income (Q1 2024 vs Q1 2023) | (In thousands, except per share amounts) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net Sales** | $551,418 | $651,436 | | **Gross Profit** | $70,281 | $73,560 | | **Operating Income** | $20,169 | $21,057 | | **Net Income** | $13,893 | $16,142 | | **Diluted EPS** | $0.61 | $0.70 | Condensed Consolidated Balance Sheets (As of March 31, 2024) | (Dollars in thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $869,806 | $851,883 | | **Total assets** | $2,373,147 | $2,363,354 | | **Total current liabilities** | $628,853 | $607,870 | | **Total liabilities** | $1,158,625 | $1,146,864 | | **Total equity** | $1,214,522 | $1,216,490 | Condensed Consolidated Statements of Cash Flows (Q1 2024 vs Q1 2023) | (In thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net Cash Provided By (Used In) Operating Activities** | $41,554 | $(72,058) | | **Net Cash Used In Investing Activities** | $(24,415) | $(90,341) | | **Net Cash Provided By (Used In) Financing Activities** | $(19,984) | $113,536 | - As of March 31, 2024, the company estimated a range of possible environmental and legal losses between **$20.8 million** and **$49.8 million**, accruing for the lower end of this range[37](index=37&type=chunk) [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, noting a 15% sales decrease and 14% net income drop due to lower prices, alongside improved liquidity and a positive 2024 outlook [Overview](index=30&type=section&id=Overview) The company operates through three main segments: Surfactants, which are key ingredients in cleaning and personal care products; Polymers, used in thermal insulation and specialty coatings; and Specialty Products, which include ingredients for food, nutritional, and pharmaceutical applications - The company's business is divided into three reportable segments: - **Surfactants:** Accounted for **71% of consolidated net sales** in Q1 2024, used in consumer and industrial cleaning products[83](index=83&type=chunk) - **Polymers:** Accounted for **26% of sales**, including polyurethane polyols for insulation and coatings[84](index=84&type=chunk) - **Specialty Products:** Accounted for **3% of sales**, including flavors and emulsifiers for food and pharmaceutical applications[85](index=85&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) For Q1 2024, net income was $13.9 million ($0.61 per diluted share), a decrease from $16.1 million ($0.70 per diluted share) in Q1 2023, with consolidated net sales falling 15% to $551.4 million primarily due to lower average selling prices Q1 2024 vs Q1 2023 Performance Summary | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $13.9M | $16.1M | -13.7% | | Diluted EPS | $0.61 | $0.70 | -12.9% | | Adjusted Net Income | $14.7M | $16.4M | -10.4% | | Adjusted Diluted EPS | $0.64 | $0.71 | -9.9% | - The **15% decrease in consolidated net sales** was driven by: - Lower average selling prices: **-$115.5 million** impact[89](index=89&type=chunk) - Increased sales volume (1%): **+$3.7 million** impact[89](index=89&type=chunk) - Favorable foreign currency translation: **+$11.8 million** impact[89](index=89&type=chunk) - The effective tax rate increased to **28.6% in Q1 2024** from 18.9% in Q1 2023, primarily due to the company's intention to elect "Bonus Depreciation" for its new Pasadena, Texas facility, which is expected to reduce the usability of certain tax deductions and credits in 2024[95](index=95&type=chunk) [Segment Results](index=34&type=section&id=Segment%20Results) In Q1 2024, Surfactants operating income decreased 4% to $26.1 million, Polymers operating income fell 16% to $8.4 million, while Specialty Products operating income surged 69% to $4.3 million Operating Income by Segment (Q1 2024 vs Q1 2023) | (In thousands) | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | **Surfactants** | $26,079 | $27,056 | -4% | | **Polymers** | $8,382 | $10,004 | -16% | | **Specialty Products** | $4,268 | $2,530 | +69% | | **Total Segment Operating Income** | $38,729 | $39,590 | -2% | - Surfactant sales in North America decreased **17%** due to lower demand in the agricultural end market from inventory destocking[97](index=97&type=chunk) - Latin American sales volume grew **16%**, driven by demand in consumer products[99](index=99&type=chunk) - Polymer sales in North America fell **14%**, largely due to a **43% volume decline** in commodity phthalic anhydride caused by operational interruptions at the Millsdale, Illinois plant[106](index=106&type=chunk) - Specialty Products' increase in gross profit and operating income was mainly attributable to higher unit margins and sales volume within the medium chain triglycerides (MCT) product line[113](index=113&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position improved significantly, with operating activities generating $41.6 million in cash in Q1 2024, compared to a $72.1 million use in Q1 2023, primarily due to better working capital management - Cash from operating activities was a source of **$41.6 million in Q1 2024**, a stark contrast to a cash use of **$72.1 million in Q1 2023**, mainly due to improved working capital[116](index=116&type=chunk) - Capital expenditures were **$30.2 million in Q1 2024**, a decrease from **$92.2 million in Q1 2023**[121](index=121&type=chunk) - The full-year 2024 forecast for capital expenditures is between **$120.0 million and $140.0 million**[122](index=122&type=chunk) - As of March 31, 2024, total debt was **$646.0 million** and net debt was **$520.2 million**[126](index=126&type=chunk) - The company had **$152.8 million available** under its credit agreement[128](index=128&type=chunk) - The company did not purchase any shares on the open market in Q1 2024[125](index=125&type=chunk) - **$125.1 million** remains authorized under its share repurchase program[125](index=125&type=chunk) [Outlook](index=44&type=section&id=Outlook) Management anticipates a gradual improvement in sales volumes, driven by recovery in Rigid Polyols demand and an expected rebound in the agricultural business in the second half of 2024, alongside a focus on achieving $50.0 million in pre-tax savings - Management expects gradual sales volume improvement, with recovery in the agricultural business anticipated in the second half of the year[135](index=135&type=chunk) - The company is focused on delivering **$50.0 million in pre-tax savings** from its cost reduction program to offset inflation and increased expenses from the new Pasadena facility commissioning[135](index=135&type=chunk) - The company believes it is positioned to deliver full-year adjusted EBITDA growth and positive free cash flow in 2024[135](index=135&type=chunk) [Non-GAAP Reconciliations](index=44&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures, which management uses to evaluate core operating performance by excluding certain non-operational items Reconciliation of Non-GAAP Adjusted Net Income (Q1 2024) | (In millions, except per share amounts) | Net Income | Diluted EPS | | :--- | :--- | :--- | | **As Reported** | $13.9 | $0.61 | | Deferred Compensation Income | (0.5) | (0.02) | | Environmental Remediation Expense | 1.5 | 0.06 | | Cumulative Tax Effect | (0.2) | (0.01) | | **Adjusted Net Income** | **$14.7** | **$0.64** | Reconciliation of Non-GAAP Adjusted EBITDA (Q1 2024 vs Q1 2023) | ($ in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Operating Income** | $20.2 | $21.1 | | Depreciation and Amortization | 27.6 | 25.5 | | Other, Net Income | 2.4 | 1.7 | | **EBITDA** | **$50.2** | **$48.3** | | Adjustments | 1.0 | 0.4 | | **Adjusted EBITDA** | **$51.2** | **$48.7** | [Item 3 – Quantitative and Qualitative Disclosures about Market Risk](index=47&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reported that there have been no material changes to the market risks described in its 2023 Annual Report on Form 10-K - There have been no material changes to the market risks disclosed in the Company's 2023 Annual Report on Form 10-K[144](index=144&type=chunk) [Item 4 – Controls and Procedures](index=47&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Based on an evaluation as of March 31, 2024, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2024[145](index=145&type=chunk) - No changes occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[145](index=145&type=chunk) [Part II - Other Information](index=47&type=section&id=Part%20II%20OTHER%20INFORMATION) This section covers other important information including legal proceedings, risk factors, and equity transactions [Item 1 – Legal Proceedings](index=47&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) This section provides updates on significant legal matters, including a consent decree entered regarding the Maywood, New Jersey site and a Notice and Finding of Violation from the USEPA concerning the Millsdale facility - A consent decree was entered on February 29, 2024, among the Company, the United States, and NJDEP regarding the Maywood, New Jersey site, requiring certain actions and payment of past costs[147](index=147&type=chunk) - On March 26, 2024, the Company received a Notice and Finding of Violation from the USEPA for its Millsdale facility, alleging violations of air regulations related to operating parameters and emissions[148](index=148&type=chunk) [Item 1A – Risk Factors](index=47&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) The company states that there have been no material changes to the risk factors that were disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material changes to the risk factors disclosed in the Company's 2023 Annual Report on Form 10-K[150](index=150&type=chunk) [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, the company purchased 46,002 shares, primarily surrendered by employees for tax withholding, with $125.1 million remaining under the share repurchase program Share Purchases in Q1 2024 | Month | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2024 | 1,614 | $94.43 | | February 2024 | 34,904 | $89.99 | | March 2024 | 9,484 | $87.52 | | **Total** | **46,002** | **$89.64** | - The shares purchased were surrendered by employees to settle statutory withholding taxes related to equity awards and were not part of the publicly announced open-market repurchase program[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) - The company has **$125.1 million remaining** under its **$150 million** share repurchase program authorized in October 2021, which has no expiration date[151](index=151&type=chunk)[152](index=152&type=chunk)

Net Income Bridge – Q1 2023 to Q1 2024 $0.71 Adj. EPS $0.64 Adj. EPS Note: All amounts are in millions of U.S. dollars and are reported after-tax. First Quarter 2024 Earnings Results April 30, 2024 Providing innovative chemical solutions for a cleaner, healthier, more energy efficient world. Certain information in this presentation consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Sect ...

Financial Data and Key Metrics Changes - The company generated positive free cash flow of $11.4 million, with capital expenditures returning to historical levels [2] - First quarter adjusted net income was $14.7 million, or $0.64 per diluted share, down from $16.4 million, or $0.71 per diluted share in the same quarter last year, primarily due to a higher effective tax rate [3] - Adjusted EBITDA for the first quarter was $51.2 million, a 5% increase year-over-year [15] Business Line Data and Key Metrics Changes - Surfactants segment net sales were $391 million, a 16% decrease year-over-year, with selling prices down 18% [16] - Polymer net sales were $146 million, a 10% decrease year-over-year, with volume increasing by 1% [18] - Specialty Products net sales were $15 million, a 33% decrease year-over-year, but adjusted EBITDA increased by 49% [19] Market Data and Key Metrics Changes - Global sales volume increased by 1% year-over-year, with strong recovery in volumes across core markets, excluding agricultural and phthalic anhydride [8] - Latin American surfactant volumes grew strong double-digits, with record volumes in Mexico [22] - The agricultural market experienced volume weakness due to continued inventory destocking [8] Company Strategy and Development Direction - The company is on track to deliver a $50 million cost reduction goal for 2024 through supply chain and workforce productivity actions [2] - The focus remains on improving operational performance and diversifying the customer base, particularly in Tier 2 and Tier 3 markets [23][24] - The company is investing in next-generation Rigid Polyol technologies to enhance energy efficiency in insulation products [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and diversity of the business, anticipating gradual improvement in sales volumes due to recovery in Rigid Polyols and surfactant volumes [32] - The company expects to see a recovery in agricultural volumes in the second half of the year, which should positively impact EBITDA [55] - Management acknowledged ongoing operational issues at the Millsdale site but is focused on addressing these challenges [31] Other Important Information - The company paid $8.5 million in dividends during the first quarter and has $125 million remaining under the share repurchase program [11] - Construction on the new alkoxylation production facility in Pasadena, Texas is approximately 90% complete, with startup expected in Q4 2024 [28] Q&A Session Summary Question: Regarding operating income and surfactants margins - Management noted that adjusted EBITDA for surfactants was slightly up 4% year-over-year, with margin improvements despite agricultural mix headwinds [39] Question: Opportunities for maintenance at Millsdale plant - Management confirmed a long-term infrastructure reinvestment plan is in place for the Millsdale site, focusing on improving power reliability and addressing unexpected maintenance outages [41] Question: Impact of Millsdale outage on Q1 - The Millsdale outage had an estimated impact of $5.8 million on pre-tax income, split evenly between the Polymers and Surfactants segments [48] Question: Price mix number and expectations for stabilization - Management indicated that the majority of the 18% decline in price mix was due to pricing, with expectations for improvement as agricultural recovery occurs [50][52] Question: Customer confidence in agricultural business recovery - Management expressed confidence that agricultural demand will rebound post-destocking, with a 50-50 chance of recovery starting in Q3 or Q4 [53] Question: Outlook for adjusted EBITDA growth - Management suggested that while they do not provide formal guidance, they expect improvement in adjusted EBITDA in the second half of the year due to agricultural recovery [55]