Ashland's Earnings Outpace Estimates, Revenues Miss in Q1

Core Insights - Ashland Global Holdings Inc. (ASH) reported adjusted earnings of 28 cents per share for Q1 fiscal 2025, a decrease from 45 cents in the same quarter last year, but exceeding the Zacks Consensus Estimate of 20 cents [1] - Total sales fell 14.4% year over year to $405 million, missing the Zacks Consensus Estimate of $433.2 million [2] Segment Highlights - Life Sciences: Sales dropped 33% year over year to $134 million, below the Zacks Consensus Estimate of $160.8 million, attributed to portfolio optimization and lower pharmaceutical sales due to weak market demand and inventory control actions, particularly in EMEA [3] - Personal Care: Sales increased by 3.9% year over year to $134 million, aligning with the Zacks Consensus Estimate of $133.9 million, driven by higher sales volumes in skin care, hair care, and biofunctionals [4] - Specialty Additives: Sales decreased by 5.7% year over year to $115 million, in line with the Zacks Consensus Estimate of $115.3 million, primarily due to portfolio optimization actions that reduced sales by approximately $7 million [5] - Intermediates: Sales remained stable year over year at $33 million, slightly below the Zacks Consensus Estimate of $34.3 million [6] Financial Performance - Operating activities consumed $30 million in cash flows during the first quarter, with free cash flow reported at negative $26 million compared to positive $66 million in the previous year, influenced by inventory corrections and reduced variable compensation payouts [7] - For the full fiscal year, sales are projected to be between $1.90 billion and $2.05 billion, with adjusted EBITDA expected in the range of $430 million to $470 million [8] Stock Performance - Ashland's shares have declined by 31.5% over the past year, compared to a 15.5% decline in the industry [9]