AdvanSix (NYSE:ASIX) Announces Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• AdvanSix missed EPS expectations for the quarter, reporting a loss of $0.50 per share versus the $0.48 loss expected, even though revenue came in above estimates at $404.18 million.
• Operating profit weakened sharply as adjusted EBITDA dropped to about $5 million, pressured by higher sulfur and natural gas costs, utility expenses, and winter-storm impacts.
• Management sees a rebound ahead, guiding for better sequential earnings and cash flow in Q2, while also advancing a Hopewell expansion project and progress on roughly $18 million in remaining 45Q carbon-capture proceeds.

AdvanSix (NYSE:ASIX - Get Free Report) issued its earnings results on Friday. The company reported ($0.50) earnings per share for the quarter, missing the consensus estimate of ($0.48) by ($0.02), FiscalAI reports. AdvanSix had a net margin of 3.24% and a return on equity of 6.97%. The company had revenue of $404.18 million for the quarter, compared to analysts' expectations of $364.90 million.

Here are the key takeaways from AdvanSix's conference call:

• Q1 sales were $404 million (up ~7% YoY) but adjusted EBITDA fell to $5 million, down ~$47 million largely due to the absence of prior-year insurance proceeds, higher sulfur and natural gas costs, utility expense, and ~$11 million of winter-storm impacts.
• Management expects significant sequential earnings and cash-flow improvement in Q2, is guiding full-year CapEx of $75–$95 million with ~20% toward growth investments, and targets leverage near the low end of its 1.0–2.5x range by year-end.
• AdvanSix announced a process design and licensing agreement to evaluate a Hopewell expansion to produce DEF, targeting an FID in H1 2027 and operations in 2029; management says the project is larger than SUSTAIN, fits its >20% IRR hurdle, and does not require additional ammonia capacity.
• Raw-material dynamics are a key near-term factor—spot sulfur prices jumped ~140% YoY and remain elevated, Q1 pricing didn’t fully cover input inflation but the company expects to recoup much of the shortfall in Q2 amid tighter acetone supply and recovering nylon end markets.
• Progressing on 45Q carbon-capture tax credits—IRS audit fieldwork is underway and AdvanSix expects roughly $18 million of remaining proceeds from prior-year credits in H2, subject to regulatory approval.

AdvanSix Trading Down 15.1%

Shares of ASIX stock traded down $3.62 during trading hours on Friday, reaching $20.32. The company's stock had a trading volume of 1,041,203 shares, compared to its average volume of 424,793. The stock has a market capitalization of $547.78 million, a P/E ratio of 11.23 and a beta of 1.33. AdvanSix has a one year low of $14.10 and a one year high of $26.73. The firm's fifty day simple moving average is $22.28 and its 200 day simple moving average is $18.96. The company has a current ratio of 1.13, a quick ratio of 0.52 and a debt-to-equity ratio of 0.26.

AdvanSix Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 23rd. Stockholders of record on Monday, March 9th were given a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date was Monday, March 9th. AdvanSix's dividend payout ratio (DPR) is currently 35.36%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in ASIX. Raymond James Financial Inc. purchased a new position in shares of AdvanSix in the 2nd quarter valued at approximately $29,000. Osaic Holdings Inc. lifted its stake in shares of AdvanSix by 60.2% in the 2nd quarter. Osaic Holdings Inc. now owns 1,285 shares of the company's stock valued at $31,000 after purchasing an additional 483 shares during the period. CIBC Private Wealth Group LLC lifted its stake in shares of AdvanSix by 27,537.5% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,211 shares of the company's stock valued at $43,000 after purchasing an additional 2,203 shares during the period. Tower Research Capital LLC TRC lifted its stake in shares of AdvanSix by 144.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,385 shares of the company's stock valued at $57,000 after purchasing an additional 1,408 shares during the period. Finally, Parallel Advisors LLC lifted its stake in shares of AdvanSix by 3,423.6% in the 4th quarter. Parallel Advisors LLC now owns 5,673 shares of the company's stock valued at $98,000 after purchasing an additional 5,512 shares during the period. Hedge funds and other institutional investors own 86.39% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on ASIX shares. Loop Capital set a $25.00 price objective on AdvanSix in a research report on Thursday, March 12th. Truist Financial lifted their price objective on AdvanSix from $19.00 to $20.00 and gave the stock a "hold" rating in a research report on Monday, February 23rd. Wall Street Zen upgraded AdvanSix from a "hold" rating to a "buy" rating in a research report on Saturday, April 11th. Finally, Weiss Ratings upgraded AdvanSix from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, April 29th. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, AdvanSix presently has a consensus rating of "Hold" and an average price target of $25.67.

About AdvanSix

AdvanSix, Inc NYSE: ASIX is an integrated chemical manufacturer specializing in the production of nylon 6 intermediates and related co‐products. Established as a publicly traded spin‐off from Honeywell Specialty Chemicals in June 2016, the company is headquartered in Parsippany, New Jersey.

The company’s principal product is caprolactam, the key building block for nylon 6 resin, used in fibers and engineering plastics across industries. In addition to caprolactam and nylon 6 resin, AdvanSix produces ammonium sulfate fertilizer and industrial chemicals such as phenol and acetone.

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