Stepan Beats by 34 Cents per Share

This morning, Stepan (SCL) reported Q4 earnings of $1.42 per share versus $1.10 per share in 2019. Wall Street had been expecting $1.08 per share. Sales volume increased by 7%.

For the year, Stepan made $5.68 per share. That’s up from $5.12 per share in 2019. Sales rose 3%.

Stepan had negative net debt at year-end as cash balances of $349.9 million exceeded total debt of $198.7 million.

CEO F. Quinn Stepan, Jr. said:

“Despite significant challenges during the year, inclusive of the global pandemic and the first quarter 2020 plant power outage at our Millsdale, IL facility, the Company delivered record fourth quarter and full year earnings. Both full year adjusted net income and adjusted EPS were up 11% versus the prior year. Surfactant fourth quarter operating income was up 28% on the strength of 8% volume growth, which was mostly attributable to strong demand in consumer product end markets driven by the fight against the COVID-19 virus. Our Polymer business was up significantly during the quarter due to the Millsdale insurance recovery. Excluding the insurance recovery, our Polymer business was up 12% due to strong European rigid polyol growth. Our Specialty Product business results were up slightly in the fourth quarter.”

The shares are down about 0.5% this morning.

Posted by on February 18th, 2021 at 9:53 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.