ASH - Why Ashland Stock Fell Today
2024-05-01 16:52:48 ET
Basic materials provider Ashland (NYSE: ASH) had a solid quarter but trimmed its full-year estimates in response to its portfolio optimization efforts. Investors weren't sure what to think, sending Ashland shares down as much as 5.2% Wednesday before the stock recovered to trade down slightly heading into the close.
Ashland earned $1.27 per share on revenue of $575 million in its fiscal second quarter ending March 31, topping Wall Street's $1.14 per-share earnings estimate on revenue that was on target with expectations. Sales were down 5% year over year, with personal care and specialty additives showing positive trends but life sciences ingredient volumes light.
"The improving sales trends experienced in December and January sustained for the second quarter as our volumes continue to converge with customer end market demand," CEO Guillermo Novo said in a statement. "While still early from a trending perspective, the breadth of our ongoing recovery as well as constructive economic and industry data, reinforces our belief that a demand normalization is underway within the personal care and specialty additives segments."
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Why Ashland Stock Fell Today