Innospec Q2 revenue beats estimates

Overview

• Innospec Q2 rev rises 1% to $439.7 mln, beating analyst expectations

• Adjusted EPS for Q2 just misses analyst estimates at $1.26, per LSEG data

• Co repurchased $8.2 mln in shares, maintaining a debt-free balance sheet

Outlook

• Innospec expects no Latin America activity resumption this year

• Companyexpects sequential gross margin improvement in Performance Chemicals in the coming quarters

• Innospec sees continued strong results in Fuel Specialties

• Company aims for sequential operating income growth in Oilfield Services

Result Drivers

• FUEL SPECIALTIES - Strong growth in operating income despite revenue decline, driven by improved price/mix and positive currency impact

• PERFORMANCE CHEMICALS - Revenue growth driven by lower margin products, leading to decreased gross margins and operating income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for Innospec Inc is $115.00, about 31% above its August 4 closing price of $79.35

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNXw3ldF