Stepan Company Q3: Earnings Miss, Lower Sales Volume, Dividend Hike & More
Portfolio Pulse from Nabaparna Bhattacharya
Stepan Company (NYSE:SCL) reported a Q3 FY23 sales decrease of 22% YoY, missing analyst consensus. Adjusted EPS also missed analyst consensus. Sales from Surfactants, Polymers, and Specialty Products fell significantly. The company attributes the lower selling prices to lower raw material costs, less favorable product/customer mix, and competitive pressures. The company also announced a 2.7% increase in its quarterly cash dividend. Despite the disappointing results, SCL shares are trading higher.
October 18, 2023 | 2:03 pm
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NEUTRAL IMPACT
Stepan Company reported lower Q3 FY23 sales and earnings, but raised its dividend. The stock is trading higher.
Despite the lower sales and earnings, the company's decision to raise its dividend may have given investors confidence, leading to the stock trading higher. However, the company's outlook suggests continued challenges, which could impact the stock's performance in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100