ACT Earnings Prediction
The chart below shows how ACT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ACT sees a -1.38% change in stock price 10 days leading up to the earnings, and a +2.92% change 10 days following the report. On the earnings day itself, the stock moves by -0.38%. This data can give you a slight idea of what to expect for the next quarter's release.
ACT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
301.78M
1.89%
-2.52%
Gross Margin
--
--
--
Operating Margin
72.94%
1.38%
-6.92%
Net Margin
53.93%
1.54%
-7.59%
EPS
1.05
7.14%
-8.70%
No Data Available
ACT Earnings Analysis
Enact Holdings Inc Corporation (ACT.O) Earnings Conference Call
Positive
EBITDA Growth Achievement: Outstanding sales and EBITDA growth with a 29% increase in EBITDA, reaching $105 million, exceeding the $100 million target.
Special Products Performance: Special Products segment accounts for 63% of sales and nearly 90% of total earnings contribution, indicating strong market demand.
Record Profit and Dividend Increase: Profit after tax reached a record $54 million, leading to a proposed dividend increase of 50% to $1.8 per share.
Sustainability Excellence Recognition: Received a platinum rating from EcoVadis, placing the company in the top 1% of rated companies, showcasing commitment to sustainability.
Major Investment Project Approved: Largest investment project approved at approximately SEK 140 million, with construction activities already underway.
Liquidity and Market Performance: Increased liquidity with a free float of almost 62%, leading to inclusion in the SDAX index, reflecting strong market performance.
Specialty Chemicals Sales Growth: Sales in Specialty Chemicals segment grew by 9% to nearly $350 million, driven by volume increases and successful product launches.
Specialty Chemicals Profitability Improvement: EBITDA margin increased to 27% in the Specialty Chemicals segment, up from 23% the previous year, indicating improved profitability.
Cash Flow Improvement: Operating cash flow increased by 45% to $105 million, demonstrating strong cash management and operational efficiency.
Sales and EBITDA Growth: Positive outlook for 2025 with expected sales growth to approximately $580 million and EBITDA growth to $113 million, driven by volume increases in Specialty Chemicals.
Negative
Sales Decline in Segments: Sales in the Basic and Intermediate segment decreased by 9% compared to the previous year, indicating a decline in this area.
Sales Decline in Custom Manufacturing: The Custom Manufacturing business experienced a reduction in sales due to lower demand and cautious customers, which is linked to the overall economic situation in the European chemical industry.
Competitive Market Challenges: The company is facing significant competition from Asian suppliers, which has led to a deliberate loss of quantities in some product areas to maintain profitability.
Specialty Chemicals Performance Decline: The Specialty Chemicals segment saw a slight decline in volume and price in Q4 2024, attributed to competitive pressures and pricing strategies.
Electricity Price Impact on Margins: Electricity prices have increased significantly, which may impact margins in the upcoming quarters despite hedging strategies in place.
Sales Decline Anticipation: The company anticipates a slight decline in sales in the Basic and Intermediate segment for 2025, indicating ongoing challenges in this area.
Trust Business Transition Challenges: The transition plan for the new trust business has not recovered as quickly as expected, suggesting difficulties in this segment.
Customer Payment Challenges: The company is experiencing challenges in convincing customers to pay for regional supply chains and adherence to ESG criteria, which may affect pricing strategies.
ACT FAQs
How does ACT typically perform around its earnings report dates?
Is Enact Holdings Inc (ACT) Q4 2024 Earnings Call Summary positive or negative?
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ACT Earning Call Sentiment
Earnings call transcript: Alchimp Group AG Q4 2024 shows mixed results
ACT.O
1.12%Positive
The earnings call reveals strong financial performance with increased sales, EBITDA, and profit after tax, driven by the high-margin Specialty Chemicals segment. A significant dividend increase and share buyback program further enhance shareholder returns. Despite challenges like rising energy costs and geopolitical risks, the company maintains a strong cash position and reduced net financial debt. The Q&A section highlights management's cautious optimism and strategic focus on growth. Given the market cap of approximately $4.8 billion, the overall sentiment suggests a positive stock price movement of 2% to 8%.
