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Ashland's (ASH) Earnings & Revenues Surpass Estimates in Q2
ASHAshland(ASH) Zacks Investment Research·2024-05-02 13:46

Core Insights - Ashland Global Holdings Inc. reported second-quarter fiscal 2024 profits of 120millionor120 million or 2.39 per share, an increase from 91millionor91 million or 1.67 in the prior-year quarter. Adjusted earnings were 1.27pershare,downfrom1.27 per share, down from 1.43 year-over-year, but exceeded the Zacks Consensus Estimate of 1.19[1]−Salesdecreasedby4.61.19 [1] - Sales decreased by 4.6% year-over-year to 575 million, slightly surpassing the Zacks Consensus Estimate of 574.2million,primarilyduetosofterpricing[1]SegmentHighlights−∗∗LifeSciences∗∗:Salesfell7.5574.2 million, primarily due to softer pricing [1] Segment Highlights - **Life Sciences**: Sales fell 7.5% year-over-year to 222 million, below the Zacks Consensus Estimate of 238.1million.Nutritionendmarketvolumesshowedmodestgrowthbutwerelowerthanthepreviousyear[2]−∗∗PersonalCare∗∗:Salesincreasedby1.2238.1 million. Nutrition end market volumes showed modest growth but were lower than the previous year [2] - **Personal Care**: Sales increased by 1.2% year-over-year to 169 million, exceeding the Zacks Consensus Estimate of 159.3million,drivenbyhighervolumesinskincare,oralcare,andhaircare[2]−∗∗SpecialtyAdditives∗∗:Salesdeclined2.5159.3 million, driven by higher volumes in skin care, oral care, and hair care [2] - **Specialty Additives**: Sales declined 2.5% year-over-year to 157 million, surpassing the Zacks Consensus Estimate of 149.5million,withhighervolumesincoatingsoffsetbylowerpricing[3]−∗∗Intermediates∗∗:Salesdropped21.5149.5 million, with higher volumes in coatings offset by lower pricing [3] - **Intermediates**: Sales dropped 21.5% year-over-year to 40 million, slightly beating the consensus estimate of 39million,primarilyduetolowerprices[3]Financials−Cashandcashequivalentswere39 million, primarily due to lower prices [3] Financials - Cash and cash equivalents were 439 million at the end of the quarter, a 10% increase from the previous year. Long-term debt remained flat at 1,328million[4]−Operatingcashflowswere1,328 million [4] - Operating cash flows were 54 million, a slight decrease from 56millionintheprior−yearquarter[4]Outlook−Forthefiscalthirdquarter,Ashlandexpectssalestobeintherangeof56 million in the prior-year quarter [4] Outlook - For the fiscal third quarter, Ashland expects sales to be in the range of 560-580millionandadjustedEBITDAtobebetween580 million and adjusted EBITDA to be between 138-148million.Forthefullfiscalyear,salesareprojectedtobe148 million. For the full fiscal year, sales are projected to be 2,150-2,225millionwithadjustedEBITDAof2,225 million with adjusted EBITDA of 470-$500 million [5] Price Performance - Ashland's shares have increased by 4.7% over the past year, contrasting with a 9.3% decline in the industry [6]