2023-06-28 17:24:58 ET
Ashland ( NYSE: ASH ) -1.5% post-market Wednesday after announcing a new $1B stock buyback authorization, replacing its previous $500M program, but also lowering full-year revenues guidance .
For FY 2023, Ashland ( ASH ) now forecasts revenues of ~$2.2B, compared with prior guidance of $2.3B-$2.4B and below $2.38B analyst consensus estimate, and adjusted EBITDA of ~$500M, pointing to "continued customer de-stocking, significant macroeconomic uncertainty and very limited visibility into global consumer demand."
For Q3, Ashland ( ASH ) sees Q3 revenues of $545M-$550M, down ~15% from the year-earlier quarter and well below $626.2M analyst consensus, and adjusted EBITDA of $130M-$135M, with each segment expected to report Y/Y sales declines due to lower volumes from rapid customer de-stocking and partially offset by favorable pricing.
"There is still significant uncertainty as to when the de-stocking dynamics will end," Ashland ( ASH ) Chair and CEO Guillermo Novo said. "Until the de-stocking is behind us, it will remain difficult for us to gauge the true end-market demand."
More on Ashland:
- Financial and valuation comparison to sector peers
- Analysis: Ashland Stock: A Tougher 2023
- Stock price return: Down 22.5% YTD, down 19% in the past 12 months
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Ashland guides Q3, full-year sales below consensus; OKs $1B stock buyback