ASIX Earnings Prediction
The chart below shows how ASIX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ASIX sees a +0.32% change in stock price 10 days leading up to the earnings, and a +1.00% change 10 days following the report. On the earnings day itself, the stock moves by +0.26%. This data can give you a slight idea of what to expect for the next quarter's release.
ASIX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
398.19M
23.31%
-12.19%
Gross Margin
14.39%
471.03%
-19.79%
Operating Margin
8.30%
249.55%
-35.26%
Net Margin
5.59%
326.32%
-34.85%
EPS
0.82
382.76%
-42.66%
No Data Available
ASIX Earnings Analysis
AdvanSix Inc. Corporation (ASIX.N) Earnings Conference Call
Positive
Sales Surge Analysis: 1. Strong Sales Growth: AdvanSix reported sales of $398 million in Q3 2024, marking a 23% increase compared to the prior year, driven by an 11% rise in sales volume and favorable pricing.
Free Cash Flow Increase: 2. Improved Free Cash Flow: The company generated free cash flow of $27 million in the quarter, an increase of $31 million year-over-year, reflecting strong operational performance.
EBITDA Margin Improvement: 3. Significant EBITDA Margin: Adjusted EBITDA for the quarter was $53 million, resulting in an adjusted EBITDA margin of 13.4%, showcasing effective cost management and pricing strategies.
Ammonium Sulfate Price Surge: 4. Increased Ammonium Sulfate Pricing: Year-over-year pricing for Ammonium Sulfate in the Corn Belt rose by 16%, demonstrating strong demand for sulfur nutrition despite broader market challenges.
Grant Award for Sustainability: 5. Successful Grant Acquisition: AdvanSix was awarded a $12 million grant from the USDA to support its Sustainable U.S. Sulfate to Accelerate Increased Nutrition program, reinforcing its growth strategy and commitment to sustainable practices.
Negative
Turnaround Financial Impact: 1. Extended Turnaround Impact: The extended turnaround at the Hopewell facility is expected to result in an approximately $17 million unfavorable impact to pre-tax income, including $10 million of fixed cost absorption and higher maintenance expenses, along with an additional $7 million of lost sales.
Capital Expenditure Reduction: 2. Increased Capital Expenditures: Capital expenditures are now anticipated to be in the range of $135 million to $140 million for 2024, down from previous guidance of $140 million to $150 million, indicating a reduction in planned investments.
Increased Tax Burden: 3. Higher Effective Tax Rate: The effective tax rate increased to 25.1% compared to 20.7% in the third quarter of 2023, primarily due to a pre-tax loss in the prior year period, which negatively impacts net income.
Nitrogen Pricing Decline: 4. Decline in Nitrogen Pricing: Corn Belt nitrogen pricing saw an 18% decline year-over-year, contrasting with the 16% increase in Ammonium Sulfate prices, indicating a challenging pricing environment for nitrogen products.
Manufacturing Execution Issues: 5. Operational Execution Challenges: The company acknowledged that its manufacturing execution has not met expectations this year, with an average annual impact of planned plant turnarounds growing to approximately $45 million over the last 10 quarters due to timing and duration of outages.
ASIX FAQs
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ASIX Earning Call Sentiment
AdvanSix Inc. (ASIX) Q3 2024 Earnings Call Transcript
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00:00
00:00
ASIX.N
-1.3%Positive
The earnings call summary presents a positive sentiment with strong financial performance, a favorable earnings outlook, and a disciplined shareholder return plan. Despite operational risks and challenges, the company maintains a positive financial outlook with increased sales and free cash flow. The Q&A section highlights management's focus on productivity and market opportunities, with analysts showing interest in growth strategies and market positioning. The overall sentiment is positive, with potential for stock price increase driven by strong financial metrics and optimistic guidance.
