KOP Earnings Prediction
The chart below shows how KOP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KOP sees a -0.53% change in stock price 10 days leading up to the earnings, and a +1.97% change 10 days following the report. On the earnings day itself, the stock moves by +0.91%. This data can give you a slight idea of what to expect for the next quarter's release.
KOP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
554.30M
0.71%
-1.58%
Gross Margin
18.64%
5.67%
1.53%
Operating Margin
10.72%
10.74%
5.00%
Net Margin
3.43%
-27.94%
-27.94%
EPS
1.09
-9.92%
-12.10%
No Data Available
KOP Earnings Analysis
Koppers Holdings, Inc. Corporation (KOP.N) Earnings Conference Call
Positive
Third Quarter Sales Record: 1. Record Third Quarter Sales: Koppers achieved consolidated sales of $554.3 million, marking a record for the third quarter, up from $550.4 million in the prior year quarter.
Record Adjusted EBITDA Growth: 2. Increased Adjusted EBITDA: The company reported adjusted EBITDA of $77.4 million, a new third quarter record, compared to $70.7 million in the prior year, resulting in an adjusted EBITDA margin of 14%.
Record Sales Growth: 3. Strong Performance in Railroad and Utility Products: The Railroad and Utility Products and Services segment generated record third quarter sales of $248 million, an increase of $14 million or 6% from the prior year quarter.
Safety Incident Reduction: 4. Improved Safety Performance: Koppers reported a 42% decrease in the rate of serious safety incidents, with 25 out of 47 facilities operating accident-free in 2024.
Dividend Increase Announcement: 5. Increased Dividend: The Board of Directors declared a quarterly cash dividend of $0.07 per share, representing a 17% increase over the previous year, with an annual dividend forecast of $0.28 per share for 2024.
Negative
Performance Chemicals Sales Decline: 1. Declining Performance Chemicals Sales: Performance Chemicals sales decreased by $3 million or 1.5% year-over-year, attributed to lower sales prices and the treatment of Brown Wood sales as intercompany transactions.
Revenue Decline in Carbon Sector: 2. Carbon Materials and Chemicals Revenue Drop: Carbon Materials and Chemicals reported a $7 million or 5.5% decline in sales compared to the prior year, primarily due to a 20% decrease in carbon pitch prices globally.
Net Debt Increase: 3. Increased Net Debt: Koppers ended the quarter with $936.4 million in net debt, reflecting a significant increase due to the $100 million borrowed for the Brown Wood acquisition, resulting in a net leverage ratio of 3.6x.
Adjusted EBITDA Forecast Revision: 4. Lower Adjusted EBITDA Forecast: The company tightened its adjusted EBITDA forecast for 2024 to a range of $270 million to $275 million, indicating a decrease from previous expectations due to various operational challenges.
Sales Decline Projection: 5. Projected Sales Decline in Carbon Materials: For 2024, Carbon Materials and Chemicals sales are estimated to decrease by $75 million, primarily due to price and volume declines in carbon pitch.
KOP FAQs
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KOP Earning Call Sentiment
Koppers Holdings Inc. (KOP) Q3 2024 Earnings Call Transcript
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KOP.N
0.33%Positive
The earnings call reveals several concerning issues: competitive pressures and market share loss in Performance Chemicals, regulatory uncertainties, supply chain challenges, and high debt levels. Despite some positive financial metrics and shareholder returns, the weak guidance, particularly stagnant revenue projections for 2024, and management's vague responses in the Q&A suggest uncertainty. The slight increase in sales and EBITDA is overshadowed by declining EPS and operating cash flow, along with significant external risks like natural disasters and economic factors. These factors collectively point towards a negative outlook for the stock price.
