An Overview of Quaker Houghton's Earnings

Quaker Houghton KWR is preparing to release its quarterly earnings on Thursday, 2024-10-31. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Quaker Houghton to report an earnings per share (EPS) of $2.15.

Anticipation surrounds Quaker Houghton's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

Last quarter the company missed EPS by $0.08, which was followed by a 2.6% drop in the share price the next day.

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

Analyst Opinions on Quaker Houghton

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

Analysts have provided Quaker Houghton with 2 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $192.5, suggesting a potential 26.65% upside.

Comparing Ratings with Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Minerals Technologies, Perimeter Solutions and Aspen Aerogels, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Buy trajectory for Minerals Technologies, with an average 1-year price target of $97.0, implying a potential 36.18% downside.
• Analysts currently favor an Neutral trajectory for Perimeter Solutions, with an average 1-year price target of $14.5, suggesting a potential 90.46% downside.
• Aspen Aerogels is maintaining an Buy status according to analysts, with an average 1-year price target of $30.14, indicating a potential 80.17% downside.

Summary of Peers Analysis

Within the peer analysis summary, vital metrics for Minerals Technologies, Perimeter Solutions and Aspen Aerogels are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Quaker Houghton ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Quaker Houghton is at the bottom.

Unveiling the Story Behind Quaker Houghton

Quaker Houghton manufactures and sells a variety of industrial process fluids. The product portfolio of the company includes metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die-cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids and surface treatment chemicals. The geographic segments of the company include America, EMEA, Asia/Pacific, and Global Specialty Businesses. The majority of the revenue is earned from America.

Breaking Down Quaker Houghton's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Quaker Houghton's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -6.43% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Quaker Houghton's net margin is impressive, surpassing industry averages. With a net margin of 7.5%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Quaker Houghton's ROE excels beyond industry benchmarks, reaching 2.5%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Quaker Houghton's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.29% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 0.54, Quaker Houghton adopts a prudent financial strategy, indicating a balanced approach to debt management.

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

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