Stock Monitor: Northern Technologies Intl. Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 01, 2017 / Active-Investors free earnings report on Axalta Coating Systems Ltd (NYSE: AXTA) ("Axalta") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/'symbol=AXTA. Axalta declared its third quarter fiscal 2017 results on 26th October 2017. The Philadelphia based global coatings Company's earnings beat market expectations. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.comis currently working on the research report for Northern Technologies International Corporation (NASDAQ: NTIC), which also belongs to the Basic Materials sector as the Company Axalta Coating Systems. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Axalta Coating Systems most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/'symbol=AXTA
Earnings Highlights and Summary
During Q3 FY17, Axalta total sales amounted to $1.10 billion in the current quarter compared to $1.03 billion, resulting in a growth of 6.82% on a y-o-y basis, which increased on a slower pace than expected, due to recent natural disasters and working capital adjustments in North America Performance Coatings segment. The Company matched street forecasts for revenue.
Income from operations for Axalta amounted to $104.00 million in Q3 FY17 compared to $117.40 million in Q3 FY16, resulting in a decline of 11.41% on a y-o-y basis. Adjusted net EBITDA of the Company amounted to $209.50 million in the current quarter compared to $230.40 million, resulting in a decline of 9.07% Y-O-Y.
During Q3 FY17, Axalta's net income amounted to $54.90 million compared to a loss of $6.60 million in Q3 FY16, due to absence of debt extinguishment and financing costs. Adjusted net income of Axalta was $65.00 million in the current quarter compared to $81.60 million in Q3 FY16, due to lower sales volumes in North America and increased raw materials costs incurred. The diluted net income per share amounted to $0.22 in Q3 FY17 compared to a loss of $0.03 in Q3 FY16. Diluted adjusted net income per share amounted to $0.26 in Q3 FY17 compared to $0.33 in Q3 FY16. Diluted adjusted net income per share beat analysts' estimates of $0.23.
Segment Details
Axalta has two business segments, namely: Performance Coatings and Transportation Coatings.
The Company's total net sales for Performance Coatings segment was $693.50 million in Q3 FY17 compared to $616.50 million in Q3 FY16, resulting in an increase of 12.49% y-o-y. The segment's adjusted EBITDA resulted into $135.10 million in the current quarter compared to $145.70 million in Q3 FY16, declining by 7.27%.
The Transportation Coatings segments' total net sales amounted to $398.30 million in the current quarter compared to $404.10 million Q3 FY16, declining by 1.44% on a y-o-y basis. Adjusted EBITDA amounted to $74.40 million in the current quarter compared to $84.70 million in Q3 FY16, resulting in a decline of 12.16% Y-O-Y due to lower selling prices at targeted light vehicle customers and high variable costs.
Cash Flow Matters
Axalta's cash provided by operating activities amounted to $306.40 million in the nine months ending September 30, 2017, compared to $331.30 million for the same period ending September 30, 2016. The cash and cash equivalents were $592.00 million as of September 30, 2017. The free cash flow amounted to $182.50 million in the current quarter compared to $114.80 million in Q3 FY16, increasing by 58.97% Y-O-Y. In Q3 FY17, Axalta repurchased $50.10 million worth stocks at an average price of $29.05 per share.
Outlook
For fiscal 2017, Axalta anticipates net sales to grow between 6% to 7%, with free cash flow in the range of $360.00 million to $400.00 million and adjusted EBITDA in the range of $870.00 million to $900.00 million.
Stock Performance Snapshot
November 30, 2017 - At Thursday's closing bell, Axalta Coating Systems's stock tumbled 15.69%, ending the trading session at $31.66.
Volume traded for the day: 23.15 million shares, which was above the 3-month average volume of 3.20 million shares.
Stock performance in the previous three-month period - up 7.25%; past twelve-month period - up 19.83%; and year-to-date - up 16.40%
After yesterday's close, Axalta Coating Systems's market cap was at $7.56 billion.
Price to Earnings (P/E) ratio was at 109.17.
The stock is part of the Basic Materials sector, categorized under the Specialty Chemicals industry. This sector was up 1.0% at the end of the session.
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