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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $498 mln | $501.81 mln (8 Analysts) |
Q4 Loss Per Share | $0.35 | ||
Q4 Net Loss | $16 mln | ||
Q4 Adjusted EPS | Miss | $1.12 | $1.28 (10 Analysts) |
*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
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)