- Stepan Company SCL reported third-quarter FY21 sales growth of 30% year-on-year, to $602.69 million, beating the analyst consensus of $545.47 million.
- Net Sales from Surfactants increased 16% Y/Y, Polymers rose 70%, and Specialty Products climbed 15%.
- Gross profit declined 5.2% Y/Y to $91.9 million, with the gross margin contracting 565 basis points to 15.2%.
- The operating margin was 6.7%, and operating income for the quarter fell 5% to $40.2 million.
- The company noted that supply chain disruptions and inflationary pressures negatively impacted Surfactants and Polymers segments.
- Net debt as of September 30, 2021, totaled $174.5 million.
- Adjusted EPS of $1.57 beat the analyst consensus of $1.42.
- Stepan has raised its quarterly dividend by 9.8% to $0.335 per share. The dividend is payable on December 15, 2021, to stockholders of record on November 30, 2021.
- In addition, the company's board authorized the repurchase of up to $150 million of its common stock.
- "Looking forward, we believe our Surfactant volumes in the North American consumer product end markets will continue to be challenged by raw material and transportation availability," said Chairman and CEO Quinn Stepan.
- "We anticipate our Specialty Product business results will improve slightly year-over-year. Despite supply chain disruptions continuing to impact the Company, we remain optimistic about delivering full year earnings growth," he added.
- Price action: SCL shares are trading higher by 4.75% at $124.28 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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