SCL Earnings Prediction
The chart below shows how SCL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SCL sees a +2.16% change in stock price 10 days leading up to the earnings, and a -1.43% change 10 days following the report. On the earnings day itself, the stock moves by -1.54%. This data can give you a slight idea of what to expect for the next quarter's release.
SCL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
525.61M
-1.23%
-3.88%
Gross Margin
10.79%
-13.54%
-22.04%
Operating Margin
1.52%
-3.80%
-66.15%
Net Margin
0.64%
390.91%
-85.19%
EPS
0.15
400.00%
-85.44%
No Data Available
SCL Earnings Analysis
Stepan Co Corporation (SCL.N) Earnings Conference Call
Positive
Adjusted EBITDA Growth: The company reported full year adjusted EBITDA of $187 million, a 4% increase versus the prior year, indicating resilience despite challenges.
Strong EBITDA Growth: Surfactant Specialty Products delivered strong double-digit adjusted EBITDA growth, showcasing the strength of this segment.
Surfactant Business Growth: Global volumes grew 1%, driven by 2.5% growth in the surfactant business, reflecting positive demand in key markets.
Positive Free Cash Flow: Free cash flow for the year was positive at $39 million, aligning with expectations and demonstrating effective cash management.
Cost Savings Achievement: The company achieved $48 million in pretax cost savings during 2024, highlighting operational efficiency efforts.
Dividend Commitment: Stepan has paid and increased its dividend for 57 consecutive years, reflecting a commitment to returning value to shareholders.
Customer Acquisition Success: The company added over 1,700 new customers in 2024, indicating successful customer acquisition strategies.
Agricultural Volume Growth: The agricultural business saw a 30% volume growth in the second half of 2024, showing recovery and strong demand in this sector.
New Facility Completion: Construction of the new Pasadena facility is nearing completion, with expectations for startup in Q1 2025, which will enhance production capacity and efficiency.
Negative
Earnings Miss Reported: Stepan Company missed earnings expectations with reported EPS of $0.1462, significantly lower than the expected $0.45.
Q4 Adjusted Net Income Decline: Fourth quarter adjusted net income decreased by 63% to $2.8 million compared to $7.5 million in the same quarter last year, primarily due to higher pre-operating expenses and a one-time tax reserve.
Decline in Adjusted EBITDA: Adjusted EBITDA for the fourth quarter was $35 million, down 7% year over year, indicating a decline in profitability.
Sales Volume Decline: Global sales volume decreased by 1% compared to the previous year, with a notable decline in the polymers segment.
Polymers Sales Decline: Polymers net sales dropped by 12% in the fourth quarter, with a 9% decline in sales volume attributed to sluggish demand and competitive pressures.
CEO Transition Expenses Impact: Corporate expenses increased due to the CEO transition, impacting overall financial results by $2.8 million.
Polymers Segment Challenges: Despite a 4% increase in full year adjusted EBITDA, the growth was overshadowed by lower performance in the polymers segment, which faced significant challenges.
SCL FAQs
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SCL Earning Call Sentiment
Stepan Company (NYSE:SCL) Q4 2024 Earnings Call Transcript
SCL.N
1.5%Positive
The earnings call revealed several negative factors, including a significant EPS miss, higher pre-operating expenses, and macroeconomic challenges impacting demand. Despite some positive elements like dividend increases and free cash flow improvements, the refusal to provide guidance and unclear management responses contribute to uncertainty. The market cap indicates a moderate reaction is likely, leading to a predicted stock price decrease of -2% to -8% over the next two weeks.
