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Ashland Q3 Earnings and Sales Lag Estimates, Guidance Narrowed
ZACKS· 2025-08-05 13:20
Core Insights - Ashland Global Holdings Inc. reported a significant loss of $742 million or $16.21 per share in Q3 fiscal 2025, contrasting with a profit of $6 million or 12 cents in the same quarter last year [1][9] - Adjusted earnings were $1.04 per share, down from $1.49 year-over-year, and missed the Zacks Consensus Estimate of $1.15 [1][9] - Total sales decreased by 14.9% year-over-year to $463 million, falling short of the Zacks Consensus Estimate of $468.4 million [2][9] Sales Performance - Life Sciences segment sales fell 17% year-over-year to $162 million, missing the consensus estimate of $170 million, primarily due to the divestiture of the Neutraceuticals division [3] - Personal Care segment sales declined 16% year-over-year to $147 million, meeting the Zacks Consensus Estimate, mainly due to portfolio optimization and the divestiture of the Avoca business line [4] - Specialty Additives segment sales decreased 13% year-over-year to $131 million, surpassing the Zacks Consensus Estimate of $124 million, attributed to exiting the low-margin construction business [4] - Intermediates segment sales dropped 8% year-over-year to $33 million, missing the consensus estimate of $34.8 million, primarily due to lower prices [5] Financial Overview - Cash and cash equivalents at the end of the quarter were $207 million, reflecting a sequential increase of approximately 23.2% [6] - Long-term debt rose to $1,382 million, up roughly 3.4% from the previous quarter [6] Future Outlook - For the full fiscal year, Ashland expects sales to range between $1.825 billion and $1.85 billion, and adjusted EBITDA to be between $400 million and $410 million, narrowing from previous estimates [7][9] Stock Performance - Ashland's shares have declined by 42.5% over the past year, compared to a 1.3% decline in the industry [8]
Compared to Estimates, Ashland (ASH) Q3 Earnings: A Look at Key Metrics
ZACKS· 2025-07-30 00:01
Core Insights - Ashland (ASH) reported a revenue of $463 million for the quarter ended June 2025, reflecting a year-over-year decline of 14.9% and an EPS of $1.04 compared to $1.49 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $468.37 million by 1.15%, and the EPS was also below the consensus estimate of $1.15, resulting in a surprise of -9.57% [1] Revenue Breakdown - Revenue from Intermediates was $33 million, slightly below the average estimate of $34.81 million, marking a year-over-year decline of 8.3% [4] - Revenue from Specialty Additives reached $131 million, exceeding the estimated $123.73 million, but still represented a decline of 12.7% year-over-year [4] - Personal Care revenue was reported at $147 million, slightly above the estimate of $146.57 million, with a year-over-year decrease of 16% [4] - Life Sciences revenue was $162 million, below the average estimate of $169.65 million, showing a year-over-year decline of 16.9% [4] Adjusted EBITDA Performance - Adjusted EBITDA for Life Sciences was $54 million, slightly below the average estimate of $55.16 million [4] - Adjusted EBITDA for Intermediates was reported at $7 million, exceeding the average estimate of $3.48 million [4] - Adjusted EBITDA for Specialty Additives was $26 million, close to the average estimate of $26.25 million [4] - Adjusted EBITDA for Personal Care was $41 million, below the average estimate of $43.05 million [4] Stock Performance - Ashland's shares have returned +1.3% over the past month, underperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]