Loading...
•
Jun 30, 2023
Innospec Q2 2023 Earnings Report
Innospec reported an increase in revenue and EPS, driven by strong performance in Oilfield Services, while Performance Chemicals faced challenges due to destocking.
Key Takeaways
Innospec Inc. reported a 3% increase in revenue to $480.4 million with net income of $28.9 million, or $1.16 per diluted share. Adjusted non-GAAP EPS was $1.28. Strong cash generation led to cash from operating activities of $55.0 million and a net cash position of $165.9 million.
Total revenues increased by 3% year-over-year to $480.4 million.
GAAP EPS was $1.16, and adjusted non-GAAP EPS was $1.28.
Cash from operating activities totaled $55.0 million.
Net cash improved to $165.9 million.
Revenue by Segment
Forward Guidance
Destocking and higher cost inventory headwinds are expected to continue into the second half of 2023, but new Personal Care contracts are expected to support sequential improvement in operating income and margins. Gross margins are expected to continue in the 32 to 35 percent range through the balance of 2023. Oilfield Services operating income is anticipated to moderate sequentially in the third quarter but remain on track for significant full year growth.
Positive Outlook
- New Personal Care contracts are expected to support sequential improvement in operating income and margins.
- Gross margins are expected to continue in the 32 to 35 percent range.
- Oilfield Services is expected to remain on track for significant full year growth in 2023.
- The company plans to continue pursuing topline and margin expansion opportunities across all oilfield segments.
- The company is focused on executing margin and efficiency improvement actions.
Challenges Ahead
- Destocking and higher cost inventory headwinds are expected to continue into the second half of 2023.
- Performance Chemicals is facing challenges due to destocking.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...