The chart below shows how KWR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KWR sees a -0.06% change in stock price 10 days leading up to the earnings, and a +4.15% change 10 days following the report. On the earnings day itself, the stock moves by +0.02%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Third Quarter Net Sales: Third quarter net sales were $462 million, 6% below the prior year, but consistent with the second quarter.
Stable Gross Margins: Gross margins in the third quarter were 37.3%, overall in line with the prior year and the prior quarter.
Adjusted EBITDA Performance: We generated adjusted EBITDA of $79 million in the third quarter, reflecting our focus on cost management and operational efficiency.
Cash Position and Leverage Ratio: We ended the third quarter with over $200 million of cash and a net leverage ratio of 1.6 times our trailing 12 months adjusted EBITDA.
Shareholder Returns Overview: We have returned approximately $50 million to shareholders through dividends and opportunistic share repurchases.
Negative
Net Sales Decline: Net sales declined approximately 6% from the prior year to $462 million, driven by lower selling price and product mix of approximately 4%.
EBITDA Decline Analysis: Adjusted EBITDA in the third quarter was $79 million, a decline of 7% year-over-year.
Gross Margin Decline: Gross margins in the third quarter were 37.3%, 60 basis points below the prior quarter, primarily due to lower gross margins in EMEA and Asia-Pacific.
EMEA Segment Earnings Decline: Segment earnings in EMEA decreased by $3 million or 12%, compared to the prior year driven by higher manufacturing costs and mix.
Americas Net Sales Decline: Net sales in the Americas declined 10% year-over-year, due to lower sales volumes and selling price and product mix.
Quaker Chemical Corporation (KWR) Q3 2024 Earnings Call Transcript
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