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Sep 30, 2020
Sensient Q3 2020 Earnings Report
Sensient reported an increase in revenue and operating income, driven by Flavors & Extracts Group's strong performance, while growth in food and pharmaceutical color sales was offset by lower personal care revenue.
Key Takeaways
Sensient Technologies Corporation reported consolidated revenue of $323.6 million, a 1.9% increase compared to the previous year. Operating income rose to $41.2 million, and diluted earnings per share reached 78 cents. The Flavors & Extracts Group showed strong revenue and profit growth, while the Color Group faced challenges due to lower personal care revenue.
Consolidated revenue increased by 1.9% to $323.6 million.
Operating income rose by 6.1% to $41.2 million.
Diluted earnings per share increased to 78 cents, up from 75 cents in the previous year.
Flavors & Extracts Group reported a revenue increase of 9.1%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company reconfirms its previously issued diluted earnings per share guidance for 2020 of $2.10 to $2.35. The Company also reconfirms its previously issued 2020 adjusted diluted earnings per share guidance of $2.60 to $2.80, which excludes divestiture & other related costs, operational improvement plan costs, the results of the operations divested and to be divested, and foreign currency impacts.
Positive Outlook
- Reconfirms diluted earnings per share guidance for 2020 of $2.10 to $2.35.
- Reconfirms adjusted diluted earnings per share guidance of $2.60 to $2.80.
- Confirms low to mid-single digit revenue growth in 2020 on a local currency basis, excluding divested revenues.
- Expects 2020 Adjusted EBITDA to grow at a low to mid-single digit rate.
- Adjusted Operating Income is expected to be flat to down at a low-single digit rate on a local currency basis.
Challenges Ahead
- Full year guidance includes approximately 5 cents of foreign currency headwinds.
- Adjusted Operating Income will be impacted by higher non-cash performance-based compensation.
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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