OEC Earnings Prediction
The chart below shows how OEC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OEC sees a -0.42% change in stock price 10 days leading up to the earnings, and a +5.17% change 10 days following the report. On the earnings day itself, the stock moves by -0.84%. This data can give you a slight idea of what to expect for the next quarter's release.
OEC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
463.40M
-0.60%
-2.85%
Gross Margin
23.20%
-1.86%
0.78%
Operating Margin
9.80%
0.00%
12.39%
Net Margin
-4.36%
-177.58%
-201.40%
EPS
-0.35
-179.55%
-200.00%
No Data Available
OEC Earnings Analysis
Orion S.A. Corporation (OEC.N) Earnings Conference Call
Positive
Adjusted EBITDA Improvement: 1. Strong Adjusted EBITDA Growth: Orion reported an adjusted EBITDA of $80 million for Q3 2024, marking a 7% sequential improvement and a 4% increase year-over-year, just $400,000 shy of the best Q3 performance in 2022.
Gross Profit Improvement: 2. Improved Gross Profit per Ton: The company achieved a 6% year-over-year increase in gross profit per ton, driven by favorable contractual pricing and better absorption within the Rubber segment, despite lower volumes.
Adjusted Net Income Growth: 3. Increased Adjusted Net Income: Adjusted net income rose by 12% and diluted EPS increased by 14% on a sequential basis, reflecting a more favorable tax rate and improved profitability metrics.
Share Repurchase Commitment: 4. Share Repurchase Program: Orion repurchased $11 million worth of stock in Q3 2024, representing over 1% of its shares outstanding, demonstrating a commitment to returning capital to shareholders.
2025 Volume Growth Expectations: 5. Positive Outlook for 2025: The company anticipates volume growth in 2025 based on commitments from customers, even if overall market conditions remain flat, supported by favorable pricing and improved operational efficiencies.
Negative
Volume Decline Analysis: 1. Declining Volumes: Overall company volumes decreased by over 3% sequentially and 8% year-over-year, with the Rubber segment experiencing an 11% drop in volumes compared to the previous year.
Negative Free Cash Flow Outlook: 2. Negative Free Cash Flow: Orion expects free cash flow to be negative $35 million for 2024, potentially worsening to negative $75 million to $80 million after accounting for the tax effect from a fraud loss.
Net Debt Leverage Increase: 3. Increased Net Debt Leverage: The net debt leverage ratio stood at 3 times on a trailing 12-month basis, which would have been closer to 2.8 times if not for the fraud event, indicating a weakened financial position.
Tire Production Decline: 4. Lower U.S. Tire Production: U.S. tire production is currently around 20% below mid-cycle economic conditions, reflecting a significant downturn in demand for the key markets Orion serves.
Inventory Revaluation Effects: 5. Inventory Revaluation Impact: The company faced a transient drag from inventory revaluation associated with lower oil prices, negatively affecting the third quarter's financial performance.
OEC FAQs
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OEC Earning Call Sentiment
Orion S.A. (OEC) Q3 2024 Earnings Call Transcript
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OEC.N
1.07%Positive
Basic Financial Performance: 2 - Despite some improvements, negative free cash flow and fraud incident impact are concerning. Product Development and Business Update: 3 - Specialty business is improving, but Rubber segment faces challenges. Market Strategy: 2 - Elevated tire imports and unclear responses on tariffs create uncertainty. Expenses and Financial Health: 2 - High net debt leverage and negative free cash flow are red flags. Shareholder Return Plan: 3 - Modest buyback activity is positive but limited. Overall, the negative cash flow and market uncertainties suggest a negative stock price movement.
