Ashland (NYSE:ASH) Releases Earnings Results, Misses Estimates By $0.11 EPS

Key Points

• Ashland (NYSE:ASH) reported a quarterly earnings per share (EPS) of $1.04, which missed analysts' expectations by $0.19 as the consensus estimate was $1.23.
• The company's stock dropped by 1.4% to $50.22 in trading following the earnings announcement, with a discussion around analysts' price targets reflecting mixed outlooks.
• Ashland increased its quarterly dividend to $0.415 per share, marking a slight rise from the previous quarter's $0.41, with an annualized dividend yield of 3.31%.

Ashland (NYSE:ASH - Get Free Report) announced its quarterly earnings results on Tuesday. The basic materials company reported $1.04 earnings per share for the quarter, missing the consensus estimate of $1.15 by ($0.11), Zacks reports. The business had revenue of $463.00 million during the quarter, compared to the consensus estimate of $479.34 million. Ashland had a positive return on equity of 7.14% and a negative net margin of 5.74%. The company's revenue for the quarter was down 14.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.49 EPS. Ashland updated its FY 2025 guidance to EPS.

Ashland Price Performance

Shares of NYSE ASH opened at $50.22 on Wednesday. Ashland has a fifty-two week low of $45.21 and a fifty-two week high of $98.44. The company has a market cap of $2.30 billion, a PE ratio of -20.92, a P/E/G ratio of 3.04 and a beta of 0.51. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.15 and a current ratio of 2.32. The business has a 50-day simple moving average of $51.06 and a two-hundred day simple moving average of $55.79.

Ashland Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Sunday, June 15th. Investors of record on Sunday, June 1st were paid a dividend of $0.415 per share. This represents a $1.66 annualized dividend and a yield of 3.31%. This is an increase from Ashland's previous quarterly dividend of $0.41. The ex-dividend date of this dividend was Friday, May 30th. Ashland's payout ratio is -69.17%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Royal Bank of Canada grew its stake in Ashland by 18.7% during the 1st quarter. Royal Bank of Canada now owns 46,306 shares of the basic materials company's stock valued at $2,747,000 after purchasing an additional 7,309 shares during the last quarter. Integrated Wealth Concepts LLC lifted its holdings in shares of Ashland by 6.3% during the first quarter. Integrated Wealth Concepts LLC now owns 3,815 shares of the basic materials company's stock worth $226,000 after purchasing an additional 225 shares during the period. Millennium Management LLC boosted its position in Ashland by 49.4% in the first quarter. Millennium Management LLC now owns 284,454 shares of the basic materials company's stock valued at $16,865,000 after buying an additional 94,067 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in Ashland by 1.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 387,132 shares of the basic materials company's stock worth $22,953,000 after buying an additional 6,245 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Ashland by 10.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 152,830 shares of the basic materials company's stock worth $9,061,000 after buying an additional 13,989 shares during the last quarter. Institutional investors and hedge funds own 93.95% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on ASH. Wall Street Zen upgraded Ashland from a "sell" rating to a "hold" rating in a research report on Friday, June 27th. Mizuho set a $60.00 target price on shares of Ashland in a research note on Tuesday, April 15th. Wells Fargo & Company cut shares of Ashland from an "overweight" rating to an "equal weight" rating in a research note on Thursday, May 1st. UBS Group cut their price target on shares of Ashland from $74.00 to $73.00 and set a "buy" rating on the stock in a report on Wednesday, July 9th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Ashland from $71.00 to $67.00 and set an "overweight" rating for the company in a research note on Tuesday, May 6th. Four research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat, Ashland presently has a consensus rating of "Hold" and a consensus target price of $68.40.

Ashland Company Profile

Ashland Inc provides additives and specialty ingredients in the North and Latin America, Europe, Asia Pacific, and internationally. It operates through Life Sciences, Personal Care, Specialty Additives, and Intermediates segments. The Life Sciences segment offers pharmaceutical solutions, including controlled release polymers, disintegrants, tablet coatings, thickeners, solubilizers, and tablet binders; nutrition solutions, such as thickeners, stabilizers, emulsifiers, and additives; and nutraceutical solutions comprising products for weight management, joint comfort, stomach and intestinal health, sports nutrition, and general wellness, as well as custom formulation, toll processing, and particle engineering solutions.