A Look Ahead: Ingevity's Earnings Forecast

Ingevity NGVT is preparing to release its quarterly earnings on Tuesday, 2024-10-29. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Ingevity to report an earnings per share (EPS) of $0.90.

Ingevity bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Historical Earnings Performance

In the previous earnings release, the company missed EPS by $0.04, leading to a 7.08% drop in the share price the following trading session.

Here's a look at Ingevity's past performance and the resulting price change:

Tracking Ingevity's Stock Performance

Shares of Ingevity were trading at $33.65 as of October 25. Over the last 52-week period, shares are down 12.95%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Insights Shared by Analysts on Ingevity

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Ingevity.

A total of 4 analyst ratings have been received for Ingevity, with the consensus rating being Neutral. The average one-year price target stands at $43.0, suggesting a potential 27.79% upside.

Understanding Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Aspen Aerogels, Valhi and Ecovyst, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Buy trajectory for Aspen Aerogels, with an average 1-year price target of $30.14, indicating a potential 10.43% downside.
• Valhi received a Underperform consensus from analysts, with an average 1-year price target of $20.0, implying a potential 40.56% downside.
• The consensus among analysts is an Buy trajectory for Ecovyst, with an average 1-year price target of $11.0, indicating a potential 67.31% downside.

Analysis Summary for Peers

The peer analysis summary provides a snapshot of key metrics for Aspen Aerogels, Valhi and Ecovyst, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Ingevity ranks at the bottom for Revenue Growth with a decline of 18.93%, while one peer shows a significant growth of 144.55%. In terms of Gross Profit, Ingevity is at the top with $123.20M, outperforming peers. However, its Return on Equity is the lowest at -66.52%, compared to positive figures for others. Overall, Ingevity's performance varies across different metrics compared to its peers.

About Ingevity

Ingevity Corp is a chemical manufacturer based in the United States. It conducts its operations through three segments, namely Performance Chemicals, Advanced Polymer Technologies, and Performance Materials. The bulk of its revenue is generated by the Performance Chemicals segment which deals with the manufacture and sale of specialty chemicals that find their use in a range of processes such as asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, and publication inks. The Performance Materials segment, on the other hand, focuses on automotive carbon products used in automobiles. The Advanced Polymer Technologies segment produces caprolactone and caprolactone-based specialty polymers. The Company generates the majority of its revenue from North America.

Ingevity: A Financial Overview

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Negative Revenue Trend: Examining Ingevity's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -18.93% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Ingevity's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -72.63%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Ingevity's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -66.52%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Ingevity's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -11.72%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Ingevity's debt-to-equity ratio is notably higher than the industry average. With a ratio of 5.49, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Ingevity visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.