ASIX - AdvanSix rallies on record Q2 sales and earnings

Chemicals company AdvanSix (ASIX +7.2%) is trading higher after reporting record sales and earnings for Q2 2021. Sales grew ~88% Y/Y to $437.68M, reflecting 32% higher volume, 31% higher raw material pass-through pricing and favorable pricing. Sales exceeded estimates by $19.88M. Chemical intermediates accounted for a third of sales, while nylon and ammonium sulfate lines made up 25% and 23% of sales, respectively. Net income was $44.1M vs $11.4M in Q220, and GAAP EPS of $1.53 (273% Y/Y) beat estimates by $0.45. EBITDA was ~$76M and margin was 17.4%, compared with $30.7M and 13.2% a year earlier. AdvanSix ended Q2 with ~$52M in cash flow from operations, vs $8.8M the prior year. Free cash flow was $41.6M, a $50.3M increase from Q220. 1H21: sales $814M vs $535.7M in 1H20; net profit $72.3M vs $20M; EPS $2.51 vs $0.71. CEO comment: "Our record performance is attributable to strong volume and pricing

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AdvanSix rallies on record Q2 sales and earnings