NGVT Earnings Prediction
The chart below shows how NGVT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NGVT sees a -2.28% change in stock price 10 days leading up to the earnings, and a +0.31% change 10 days following the report. On the earnings day itself, the stock moves by -0.92%. This data can give you a slight idea of what to expect for the next quarter's release.
NGVT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
376.90M
-15.49%
-3.51%
Gross Margin
34.47%
19.19%
9.29%
Operating Margin
22.82%
24.90%
19.35%
Net Margin
-28.44%
-603.36%
-60.84%
EPS
-2.95
-527.54%
-62.23%
No Data Available
NGVT Earnings Analysis
Ingevity Corporation Corporation (NGVT.N) Earnings Conference Call
Positive
Cash Flow Performance: 1. Strong Cash Generation: In Q3, Ingevity generated free cash flow of $28.5 million, demonstrating effective cash management despite restructuring costs.
Gross Margin Improvement: 2. Improved Gross Margin: The adjusted gross margin increased by 610 basis points to 38.8%, driven by repositioning actions that reduced exposure to lower-margin markets.
Performance Materials Sales Increase: 3. Performance Materials Growth: The Performance Materials segment achieved a 3% sales growth to $151.1 million, with an EBITDA margin of 53.3%, reflecting strong operational efficiency.
Cost Savings Achievement: 4. Cost Savings Realized: The company realized $18 million in cost savings during Q3, contributing to a positive outlook for achieving $65 million to $75 million in savings for 2024.
EBITDA Margin Enhancement: 5. EBITDA Margin Improvement: Adjusted EBITDA margin improved by 340 basis points to 28.2%, primarily due to strong performance in the Performance Materials segment and the benefits of repositioning actions.
Negative
Third Quarter Sales Decline: Third quarter sales of $376.9 million were down 16%, due primarily to our repositioning actions in Performance Chemicals that resulted in the exit of lower-margin end markets in our Industrial Specialties product line and lower sales in the Road Technologies product line, due to unfavorable weather conditions in key parts of North America.
Restructuring Charges Impact: During the quarter, we incurred before-tax restructuring charges of $86.9 million, primarily related to the closure of our Crossett, Arkansas facility and a $100 million charge for the termination of a long-term CTO supply contract, which led to a GAAP net loss of $107.2 million.
Performance Chemicals Sales Decline: Sales of Performance Chemicals were down 31%, primarily due to the repositioning actions affecting the Industrial Specialties product line, where sales declined 54%.
Sales Decline Due to Weather: Road Technologies sales were down 8%, primarily due to weather-related delays in road construction projects during the current quarter, with expectations that many projects will shift into next year’s paving season.
Adjusted EBITDA Decline: Adjusted EBITDA dollars were down about $4 million in the current quarter versus last year, negatively impacted by approximately $5 million in CEO severance charges and almost $4 million in Crossett restructuring-related inventory charges.
NGVT FAQs
How does NGVT typically perform around its earnings report dates?
Is Ingevity Corporation (NGVT) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
NGVT Earning Call Sentiment
Ingevity Corporation (NGVT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
NGVT.N
-1.56%Positive
The earnings call reflects a challenging period with a 16% decline in sales, a GAAP net loss due to restructuring, and increased adjusted SG&A. While there are improvements in margins, the Q&A reveals ongoing uncertainties, particularly around the CEO search and business strategy. The market may react negatively to the weak financial performance, high leverage, and lack of clear strategic direction. The stock, with a market cap of $1.6 billion, is likely to experience a negative movement, between -2% to -8%, over the next two weeks.
