SXT Earnings Prediction
The chart below shows how SXT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SXT sees a +1.34% change in stock price 10 days leading up to the earnings, and a +0.94% change 10 days following the report. On the earnings day itself, the stock moves by -2.82%. This data can give you a slight idea of what to expect for the next quarter's release.
SXT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
376.42M
7.76%
-4.12%
Gross Margin
31.95%
11.79%
-3.97%
Operating Margin
11.38%
392.64%
-13.66%
Net Margin
8.00%
579.04%
-3.96%
EPS
0.71
607.14%
-7.79%
No Data Available
SXT Earnings Analysis
Sensient Technologies Corp Corporation (SXT.N) Earnings Conference Call
Positive
Fourth Quarter Financial Highlights: Strong fourth quarter performance with 8.9% local currency revenue growth, 18.8% local currency adjusted EBITDA growth, and 29.4% local currency adjusted EPS growth.
Consistent Revenue and EBITDA Growth: Full year 2024 results showed 7.4% local currency revenue growth and 8.3% local currency adjusted EBITDA growth, indicating consistent performance.
Strong Revenue and Profit Growth: All groups reported outstanding local currency revenue and operating profit growth, showcasing the company's overall strength.
Sales Wins and Volume Improvement: Record level of new sales wins across all groups contributed to volume improvement, reflecting effective sales execution and customer service.
Revenue and Profit Growth: The Color Group achieved 14% local currency revenue growth and 27.4% local currency operating profit growth in Q4 2024, with a full year adjusted EBITDA margin improvement to 22.1%.
Flavors and Extracts Performance: The Flavors and Extracts group delivered 3.4% local currency revenue growth and 18.4% local currency operating profit growth in Q4 2024, with a full year adjusted EBITDA margin of 16.1%.
Asia Pacific Growth Surge: The Asia Pacific Group experienced exceptional growth with 25.2% local currency revenue growth and 41.7% local currency operating profit growth in Q4 2024, indicating strong market performance.
Cost Savings Initiative: The company is on track to achieve targeted savings of approximately $8 million to $10 million annually from its portfolio optimization plan, enhancing cost efficiency.
Strategic Acquisition for Growth: Successful acquisition of Seoli, a French startup, to enhance natural color extraction capabilities, demonstrating strategic growth initiatives.
Natural Colors Growth Opportunity: The shift towards natural colors presents a significant growth opportunity, with approximately 60% of the Color Group's revenue coming from natural colors, positioning Sensient favorably in the market.
Capital Allocation Strategy: The company has a strong focus on capital allocation, successfully lowering its leverage ratio to 2.3, and plans to use excess cash for stock buybacks or debt reduction.
2025 Revenue and EPS Guidance: Guidance for 2025 indicates expected mid single-digit local currency revenue growth, with high single-digit local currency adjusted EPS growth, reflecting confidence in future performance.
Negative
New Product Launch Decline: Despite strong overall performance, the company experienced a decline in new product launches in the market in 2024, which could impact future growth opportunities.
Flavors Revenue Growth Slowdown: The Flavors and Extracts group reported only 3.4% local currency revenue growth in the fourth quarter, indicating slower growth compared to other segments.
Currency Translation Headwind Impact: The company anticipates a foreign currency translation headwind of approximately $0.1 to $0.15 in 2025, which could negatively impact earnings per share.
Rising Interest Expense Concerns: Interest expense is expected to be slightly above the $28.8 million reported in 2024, indicating potential financial pressure going forward.
Slow Start to Growth: The company noted that the first quarter of 2025 started slowly, with expectations of only 3% to 5% growth, which may reflect broader market challenges.
Color Transition Challenges: The transition from synthetic to natural colors presents significant supply chain challenges and regulatory hurdles, which could complicate growth despite the potential market opportunity.
SXT FAQs
How does SXT typically perform around its earnings report dates?
Is Sensient Technologies Corp (SXT) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
SXT Earning Call Sentiment
Earnings call transcript: Sensient Technologies Q4 2024 revenue growth
SXT.N
0.96%Positive
The earnings call reveals strong financial performance with significant revenue and operating income growth, optimistic guidance, and a strategic focus on natural colors. Despite regulatory risks and competitive pressures, the company's robust portfolio optimization and share buyback plans provide a positive outlook. The Q&A session highlights ongoing business wins and market expansion, particularly in Asia-Pacific. Given these factors, along with a moderate market cap, a positive stock price movement of 2% to 8% is expected over the next two weeks.
