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      Financial Results Boost Stepan (SCL) Stock - Stocks Telegraph

      By admin

      Published on

      October 19, 2023

      2:04 PM UTC

      Financial Results Boost Stepan (SCL) Stock - Stocks Telegraph

      Stepping into the limelight on the stock market stage, Stepan Company (NYSE: SCL) made a notable ascent yesterday, registering a substantial 6.18% increase to settle at a closing price of $72.21. The trading activity surrounding Stepan (SCL) shares exhibited a remarkable feat, as it surpassed its typical daily trading volume by a factor of approximately two, amounting to 0.24 million shares.

      This surge in the valuation of SCL stock was catalyzed by the unveiling of the corporation’s financial performance for the third quarter of the year 2023, culminating on September 30, 2023. Stepping into the realm of financial disclosures, Stepan has reported its third-quarter revenue for September 2023 at a robust $562.23 million, marking a significant 21.8% year-over-year decline.

      Concurrently, SCL revealed its $12.6 million profit, equivalent to $0.55 per diluted stock. This falls short of the prior year’s extraordinary $39.4 million performance, or $1.71 per diluted share, primarily due to a 9% decrease in overall company sales. Exchange rate conversions provided a minor boost, contributing $0.7 million to the bottom line.

      In a laudable custom, Stepan hiked its quarterly cash dividend by 3% in the last quarter of 2023, marking the 56th consecutive year of such boosts. Earnings per share (EPS) for the same period settled at $0.64, a noticeable decline from the $2.01 documented a year earlier. Meanwhile, SCL’s Q3 outcomes displayed incremental expansions in volume, adjusted EBITDA, and adjusted earnings compared to Q2 2023.

      The volume surge was fueled by heightened demand for Rigid Polyols and contracted volume in the Personal Care sector, somewhat offset by destocking in the agricultural business. Margins in the Surfactant and Specialty Product units faced challenges due to product mix, inventory costs, and pricing pressures, although expenses saw a modest reduction.

      Noteworthy in its commitment to employee transition, Stepan allocated a $5.5 million pre-tax restructuring reserve. On the financial front, Stepan (SCL) made headway by reducing inventory levels by $55 million. Additionally, capital investments were completed, and an ongoing alkoxylation project in Pasadena, TX, is poised for operation in mid-2024.

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