Ashland Q4 adjusted profit misses estimates; forecasts higher 2027 sales

Overview

• U.S. specialty ingredients maker's fiscal Q4 revenue rose 4% but slightly missed analyst expectations

• Adjusted EPS for Q4 missed analyst expectations despite rising to $1.12 from $1.08 a year earlier

• Company posted a net loss of $16 mln, versus net income a year earlier

Outlook

• Ashland sees fiscal 2027 sales of $1.905-$1.975 bln

• Company expects fiscal 2027 adjusted EBITDA of $405-$435 mln

• Ashland expects resilient demand in Life Sciences and Personal Care for fiscal 2027

Result Drivers

• HIGHER SALES VOLUMES - Co said Q4 sales volumes increased, driven by Life Sciences and Personal Care growth

• PRICE INCREASES - Co said pricing actions offset higher raw material costs in Q4

• SPECIALTY ADDITIVES PRESSURE - Co said lower Hopewell productivity and unfavorable absorption reduced Specialty Additives earnings

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Ashland Inc. is $80.00, about 9.6% above its November 3 closing price of $73.02

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• Nov 3 - DuPont raises annual profit forecasts, sees upbeat Q4 on healthcare, aerospace strength

• Nov 2 - Celanese Q3 sales rise 6%

• Nov 3 - Flavors and fragrances maker IFF's Q3 sales beat; low end of 2026 outlook raised

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)