LONDON, UK / ACCESSWIRE / December 15, 2017 / Active-Investors free earnings report on Ashland Global Holdings Inc. (NYSE: ASH) (“Ashland”) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=ASH. The Company posted its financial results on November 06, 2017, for the fourth quarter of the fiscal year 2017. The Company’s revenue and adjusted EPS surpassed analysts’ expectations. Register today and get free access to our complimentary member’s area where many more reports are available:
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Earnings Highlights and Summary
For the three months ended September 30, 2017, Ashland’s revenues increased 17% to $880 million from $754 million in Q4 FY16. The Company’s revenue numbers surpassed analysts’ expectations of $869.96 million.
During Q4 FY17, Ashland’s gross profit increased 28.6% to $234 million from $182 million in the same period of last year. For the reported quarter, the Company’s gross margin increased 250 basis points to 26.6% of revenue from 24.1% of revenue in the third quarter of last year.
During Q4 FY17, Ashland’s earnings before interest, tax, depreciation, and amortization (EBITDA) was positive $106 million versus negative $141 million in the comparable period of last year. During Q4 FY17, Ashland’s adjusted EBITDA increased 13% to $161 million from $143 million in Q4 FY16. For the reported quarter, the Company’s adjusted EBITDA margin decreased 70 basis points to 18.3% of revenue from 19.0% of revenue in the third quarter of last year.
During Q4 FY17, Ashland’s operating income was positive $34 million compared to negative $272 million in the corresponding period of last year. For the reported quarter, the Company’s adjusted operating income increased 22% to $84 million from $69 million in Q4 FY16.
During Q4 FY17, Ashland’s earnings before tax (EBT) was positive $3 million compared to negative $330 million in the same period of last year.
For the reported quarter, Ashland’s net loss was $53 million compared to a net loss of $344 million in Q4 FY16. During Q4 FY17, the Company’s diluted earnings per share (EPS) was negative $0.84 versus negative $5.56 in the comparable period of last year. For the reported quarter, Ashland’s adjusted net income increased 67% to $50 million on a y-o-y basis from $30 million in Q4 FY16. During Q4 FY17, the Company’s adjusted diluted EPS increased 63% to $0.78 on a y-o-y basis from $0.48 in Q4 FY16, surpassing analysts’ expectations of $0.68.
Specialty Ingredients – During Q4 FY17, the Company’s Specialty Ingredients segment’s revenue increased 12% to $598 million from $532 million in the corresponding period of last year. For the reported quarter, the segment’s operating income decreased 9.0% to $61 million from $67 million in Q4 FY16. For the reported quarter, the segment’s sales per shipping day increased 14.5% to $9.5 million from $8.3 million in the fourth quarter of 2016. For the reported quarter, the segment’s sales were 80,500 metric tons compared to 79,600 metric tons in Q4 FY16.
Composites – During Q4 FY17, the Company’s Composites segment’s revenue increased 35% to $219 million from $162 million in the same period of last year. For the reported quarter, the segment’s operating income increased 89% to $17 million from $9 million in Q4 FY16. For the reported quarter, the segment’s sales per shipping day increased 140% to $3.5 million from $2.5 million in the fourth quarter of 2016. For the reported quarter, the segment’s sales were 94,800 metric tons compared to 75,200 metric tons in Q4 FY16.
Intermediates and Solvents – During Q4 FY17, the Company’s Intermediates and Solvents segment’s revenue increased 5% to $63 million from $60 million in the comparable period of last year. For the reported quarter, the segment’s operating loss was $4 million compared to an operating loss of $186 million in Q4 FY16. For the reported quarter, the segment’s sales per shipping day increased 11.1% to $1.0 million from $0.9 million in the fourth quarter of 2016. For the reported quarter, the segment’s sales were 27,200 metric tons compared to 33,500 metric tons in Q4 FY16.
As on September 30, 2017, Ashland’s cash and cash equivalents decreased 44.3% to $566 million from $1.02 billion as on December 31, 2016. For the reported quarter, the Company’s long-term debt increased 11.1% to $2.58 billion from $2.33 billion in Q4 FY16.
For the reported quarter, the Company’s accounts receivable increased 15.7% to $612 million from $529 million in Q4 FY16. For the reported quarter, the Company’s trade and other payable increased 8.8% to $409 million from $376 million in Q4 FY16.
During Q4 FY17, the Company’s cash provided by operating activities increased 2.9% to $140 million from $136 million in the corresponding period of last year. During Q4 FY17, the Company’s cash provided by operating activities increased 24.1% to $67 million from $54 million in Q4 FY16.
For FY18, the Company expects adjusted diluted EPS to be in the range of $3.20 – $3.40, and free cash flow to be $220 million.
Stock Performance Snapshot
December 14, 2017 – At Thursday’s closing bell, Ashland Global Holdings’ stock dropped 1.32%, ending the trading session at $70.06.
Volume traded for the day: 419.14 thousand shares.
Stock performance in the last month – up 5.08%; previous three-month period – up 9.43%; past twelve-month period – up 27.76%; and year-to-date – up 31.02%
After yesterday’s close, Ashland Global Holdings’ market cap was at $4.34 billion.
The stock has a dividend yield of 1.28%.
The stock is part of the Basic Materials sector, categorized under the Chemicals – Major Diversified industry.
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