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Dec 31, 2019
Sensient Q4 2019 Earnings Report
Sensient Technologies Corporation reported a loss per share in Q4 2019, with revenue and operating income decreasing compared to the same period last year.
Key Takeaways
Sensient Technologies Corporation experienced a challenging fourth quarter in 2019. The company reported a loss per share of $0.40, a decrease in revenue to $318.6 million, and an operating loss of $14.5 million. These results were impacted by divestiture and other related costs.
Sensient Technologies Corporation reported a loss per share of 40 cents in Q4 2019, compared to earnings per share of 78 cents in Q4 2018.
Revenue decreased to $318.6 million in Q4 2019 from $324.6 million in the same period last year.
The company's operating loss was $14.5 million in Q4 2019, contrasting with an operating income of $45.3 million in Q4 2018.
Results include divestiture & other related costs, primarily non-cash impairment charges, which decreased net earnings $43.2 million ($1.02 per diluted share).
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Sensient anticipates 2020 diluted earnings per share to fall between $1.85 and $2.15, which factors in an estimated 65 to 75 cents per share related to divestiture and other associated costs, along with the performance of the operations slated for divestiture. Excluding these divestiture-related items and the operations to be divested, the company projects adjusted diluted earnings per share to be in the range of $2.60 to $2.80.
Positive Outlook
- Adjusted diluted EPS to be between $2.60 and $2.80.
- Expects low to mid-single digit revenue growth in 2020 on a local currency basis, excluding the revenues of the product lines to be divested.
- Company expects 2020 Adjusted EBITDA to grow at a low to mid-single digit rate
- Focus on core businesses after divestitures.
- Strategic alternatives for non-core businesses.
Challenges Ahead
- 2020 diluted earnings per share to be between $1.85 and $2.15, which includes an estimate of 65 to 75 cents per share of divestiture & other related costs and the results of the operations to be divested.
- Company’s 2020 diluted earnings per share and adjusted earnings per share will be impacted by a higher tax rate and higher non-cash performance-based compensation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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