Stock Monitor: Gulf Resources Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 04, 2017 / Active-Investors free earnings report on Olin Corp. (NYSE: OLN) 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=OLN. The Company posted its third quarter fiscal 2017 financial results on October 30, 2017. The leading manufacturer and distributor of chemical products' adjusted EPS met analysts' estimates. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for Gulf Resources, Inc. (NASDAQ: GURE), which also belongs to the Basic Materials sector as the Company Olin. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/'symbol=GURE
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Olin 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=OLN
Earnings Highlights and Summary
Olin generated sales of $1.55 billion in Q3 FY17 compared to $1.45 billion in Q3 FY16, resulting in an increase of 7.03% on a y-o-y basis, but impacted negatively by flooding from Hurricane Harvey. Olin's sales numbers missed analysts' estimates by $30.00 million.
Olin's operating income amounted to $112.60 million in the reported quarter compared to $67.80 million in Q3 FY16, resulting in a 66.08% increase on a y-o-y basis. The adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to $265.50 million in the reported quarter compared to $221.90 million in Q3 FY16, increasing by 19.65% on a y-o-y basis. During Q3 FY17, the Company was majorly impacted by Hurricane Harvey and was hence forced to reduce production at its Freeport facility in Texas, due to logistics constraints, customer outages, and raw material availability.
Olin's net income amounted to $52.70 million in the reported quarter compared to $17.50 million in Q3 FY16, surging 201.14% on a y-o-y basis. The diluted earnings per share (EPS) amounted to $0.31 in the reported quarter compared to $0.11 in Q3 FY16, surging 181.81% on a y-o-y basis. The adjusted EPS amounted to $0.35 and met analysts' estimates.
Segment Details
Olin has three business segments, namely (i) Chlor Alkali Products and Vinyls, (ii) Epoxy, and (iii) Winchester.
Chlor Alkali Products and Vinyls segment reported sales of $881.20 million in the reported quarter compared to $779.40 million in Q3 FY16, increasing by 13.09% on a y-o-y basis, due to increased caustic soda prices but lower volumes sold due to Hurricane Harvey.
Epoxy segment's sales amounted to $489.90 million in the reported quarter compared to $470.10 million in Q3 FY16, resulting in a 4.21% increase on a y-o-y basis, due to higher product sales but lower volumes sold due to Hurricane Harvey. The segment earnings were reduced by $18.70 million during the reported quarter.
Winchester segment's sales amounted to $183.80 million in the reported quarter compared to $203.20 million in Q3 FY16, declining 9.55% on a y-o-y basis, due to lower shipments to commercial customers, and lower demand of pistols and rifles.
Cash Matters
Olin's cash and cash equivalents for the nine months ending September 30, 2017, amounted to $255.90 million compared to $127.00 million for the same period in FY16. The net income from operating activities amounted to $455.10 million for the nine months ending September 30, 2017, compared to $407.10 million for the same period in FY16.
The Company declared a dividend of $0.20 per common share, payable on December 11, 2017, to stock holders of record at the close of business on November 10, 2017.
Olin also made a payment of $209.40 million to The Dow Chemical Co. for reservation of future ethylene supply, borrowing $120.00 million under its senior revolving credit facility and $40.00 million under its receivables financing agreement.
Outlook
Olin anticipates EBITDA of $100.00 million for FY17. The Company expects EPS to be $0.41 for Q4 FY17, $0.93 for FY17, and $2.32 for FY18.
Stock Performance Snapshot
December 01, 2017 - At Friday's closing bell, Olin's stock dropped 1.85%, ending the trading session at $34.98.
Volume traded for the day: 1.58 million shares.
Stock performance in the last three-month - up 9.21%; previous six-month period - up 20.66%; past twelve-month period - up 33.46%; and year-to-date - up 36.59%
After last Friday's close, Olin's market cap was at $5.77 billion.
Price to Earnings (P/E) ratio was at 75.55.
The stock has a dividend yield of 2.29%.
The stock is part of the Basic Materials sector, categorized under the Specialty Chemicals industry. This sector was up 0.5% at the end of the session.
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