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Mar 31, 2021
Stepan Q1 2021 Earnings Report
Stepan had a record quarterly earnings, driven by improved product and customer mix and higher global demand.
Key Takeaways
Stepan Company reported record net income of $40.6 million, or $1.74 per diluted share, and adjusted net income of $42.4 million, or $1.82 per diluted share. Total Company sales volume increased 6% versus the prior year. The company exceeded $1 billion of equity for the first time.
Net income was a record $40.6 million, or $1.74 per diluted share versus $27.5 million, or $1.18 per diluted share, in the prior year.
Adjusted net income was a record $42.4 million, or $1.82 per diluted share versus $24.2 million, or $1.04 per diluted share, in the prior year.
Surfactant operating income was $53.2 million versus $36.2 million in the prior year, driven by improved product and customer mix and higher global demand.
Polymer operating income was $18.0 million versus $7.5 million in the prior year, attributable to a 32% increase in global sales volume.
Revenue by Segment
Forward Guidance
The Company delivered record quarterly earnings in the first quarter of 2021 and is cautiously optimistic about the remainder of the year.
Positive Outlook
- Surfactant volumes in the North American consumer product end markets should recover following the supply chain disruptions caused by the severe weather in Texas.
- Heightened consumer demand for disinfection, cleaning and personal wash products will continue.
- Demand for surfactants within the agricultural and oilfield markets will improve versus 2020.
- Global demand for rigid polyols continues to recover from pandemic-related delays and cancellations of re-roofing and new construction projects.
- The acquisition of INVISTA’s aromatic polyester polyol business should position our Polymer business to deliver growth versus prior year.
Challenges Ahead
- Raw material price increases
- Supply constraints
- Lower margins within our MCTs product line
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
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