Ashland (NYSE:ASH) Announces Quarterly Earnings Results

Key Points

• Ashland reported quarterly EPS of $0.89, missing the $1.27 consensus estimate by $0.38. Revenue was $996 million, above analysts’ $501.76 million expectation.
• Shares fell $1.22 to $72.97 in Tuesday trading.
• Ashland paid a quarterly dividend of $0.42 per share, equivalent to a 2.3% yield. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $74.10.

Ashland (NYSE:ASH - Get Free Report) announced its earnings results on Tuesday. The basic materials company reported $0.89 earnings per share for the quarter, missing the consensus estimate of $1.27 by ($0.38), FiscalAI reports. Ashland had a return on equity of 8.03% and a net margin of 2.82%. The business had revenue of $996.00 million for the quarter, compared to analysts' expectations of $501.76 million.

Ashland Price Performance

ASH stock traded down $1.22 during trading on Tuesday, hitting $72.97. The stock had a trading volume of 896,171 shares, compared to its average volume of 766,982. Ashland has a twelve month low of $47.12 and a twelve month high of $78.25. The company's 50-day moving average price is $71.51 and its two-hundred day moving average price is $63.92. The company has a debt-to-equity ratio of 0.73, a current ratio of 3.05 and a quick ratio of 1.89. The stock has a market capitalization of $3.34 billion, a P/E ratio of 64.01, a PEG ratio of 1.85 and a beta of 0.40.

Ashland Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were issued a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 2.3%. The ex-dividend date was Tuesday, September 1st. Ashland's payout ratio is presently 147.37%.

Analyst Ratings Changes

Several analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $85.00 target price on shares of Ashland in a research report on Friday, July 31st. Weiss Ratings upgraded shares of Ashland from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, October 2nd. Wells Fargo & Company set a $75.00 target price on Ashland in a research note on Friday, October 16th. JPMorgan Chase & Co. increased their target price on Ashland from $65.00 to $75.00 and gave the company an "overweight" rating in a research report on Friday, July 10th. Finally, Morgan Stanley lifted their price target on shares of Ashland from $58.00 to $78.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Seven equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $74.10.

About Ashland

Ashland Inc is a global specialty materials company that develops and supplies functional ingredients, additives and solutions for industrial and consumer markets. Its products are used to enhance the performance, stability, texture, appearance and processing of finished goods.

The company serves a range of industries, including pharmaceuticals, personal care, coatings, construction, food and beverages, adhesives and specialty chemicals. Its portfolio includes polymers, cellulose-based ingredients, rheology modifiers, film-forming agents, preservatives and other specialty additives used in applications such as drug delivery, skin and hair care, architectural coatings and building materials.

Ashland traces its roots to 1924, when it was established as Ashland Refining Company in Kentucky.

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