- Ashland ( NYSE: ASH ) issued preliminary FQ1 results , with revenues estimated at $525M - up 3% Y/Y but lower than the current consensus estimate of $548.31M.
- Sales growth will be driven by global demand for pharmaceutical ingredients, but would have been offset by weaker demand for specialty additives and personal care ingredients amid COVID-19 restrictions in China, the economic slowdown in Europe and significant distributor destocking in both regions.
- Ashlan also saw lower specialty additives operating margins amid maintenance shutdowns and COVID-19 dynamics in China, which led to an extended unplanned shutdown at its Nanjing facility late in FQ1.
- Income from continuing operations will be $42M with an EPS of $0.76. Adjusted earnings from continuing operations will be $54M or $0.97 per share.
- Ashland has maintained its outlook for FY23. Sales will be in the range of $2.5B-$2.7B with an adjusted EBITDA of $600M-$650M. The current consensus revenue estimate is $2.54B. Full FQ1 results are set to release on Wednesday, February 1, 2023.
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Ashland estimates lower-than-expected preliminary FQ1 revenues