Innospec (IOSP) Stock Up 27% In 3 Months: What's Driving It?
Zacks Investment Research | Mar 07, 2019 06:53AM ET
Shares of Innospec Inc. (NASDAQ:IOSP) have popped 27% over the last three months. The company has also trounced its industry ’s rise of roughly 6% over the same time frame.
Innospec has a market cap of roughly $2 billion. Average volume of shares traded in the last three months is around 97K.
Let’s take a look into the factors that are driving this Zacks Rank #1 (Strong Buy) stock.
Driving Factors
Strong fourth-quarter results and upbeat prospects have contributed to a rally in the company’s shares. Innospec swung to a profit of $20.4 million or 83 cents per share in the fourth quarter from a loss of $4.8 million or 20 cents in the year-ago quarter.
Adjusted earnings of $1.62 per share for the quarter were up from $1.47 per share a year ago. It also exceeded the Zacks Consensus Estimate of $1.35. The results were aided by the company’s actions to manage costs.
The chemical maker’s revenues went up roughly 12% year over year to $395 million in the quarter. The company saw strong growth in its Fuel Specialties and Oilfield Services units.
Innospec has outpaced the Zacks Consensus Estimate in three of the trailing four quarters. In this timeframe, the company has delivered a positive average earnings surprise of roughly 8%.
Innospec is gaining from its balanced portfolio and strategic focus on major end markets. The company remains focused on growing sales and improving margins and is also looking to improve the effectiveness of its operations.
Innospec is also engaged in acquisition opportunities leveraging its strong balance sheet and cash flows, which the company believes will strengthen its business. The company’s net cash from operating activities jumped around 47% year over year to $69.8 million in the fourth quarter.
The company, in its fourth-quarter call, said that it has several significant organic growth options that along with potential acquisition opportunities will deliver further value for its shareholders. The company believes that it can continue to deliver positive growth in 2019 amid tough challenges driven by the instability in the geopolitical environment.
Innospec Inc. Price and Consensus
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.