ASH - Why Ashland Stock Popped Today
2024-01-31 19:17:07 ET
Shares of Ashland (NYSE: ASH) jumped 15.9% on Wednesday after the specialty materials company delivered better-than-feared quarterly results and encouraging forward guidance.
For its fiscal first quarter of 2024 ended Dec. 31, 2023, Ashland's sales declined 10% year over year to $473 million, translating to adjusted ( non-GAAP ) net income of $0.45 per share (down from $0.97 per share a year earlier). Analysts, on average, were expecting adjusted earnings of only $0.19 per share, albeit on slightly higher revenue of $478 million.
Management noted that market-demand dynamics remained roughly consistent as previously communicated. In particular, it said year-over-year volume declines have begun to abate and stabilize across most end markets. Ashland's earnings were bolstered by favorable pricing within its life sciences and personal care segments, as well as its repurchase of another $100 million of Ashland shares during the quarter.
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Why Ashland Stock Popped Today