Olin (NYSE:OLN) Announces Quarterly Earnings Results

Key Points

• Olin missed quarterly earnings expectations: The specialty chemicals company reported $0.13 in EPS versus the $0.15 consensus estimate, while revenue of $1.75 billion fell short of analysts’ $1.83 billion forecast.
• Shares declined and financial metrics remained weak: Olin traded around $16.03, near its 12-month low, with negative net margin and return on equity, plus a debt-to-equity ratio of 1.77.
• Analyst sentiment was unfavorable despite a 5% dividend yield: The stock’s consensus rating was “Reduce,” with an average price target of $20.07; Olin also maintained a $0.20 quarterly dividend, or $0.80 annually.

Olin (NYSE:OLN - Get Free Report) posted its earnings results on Thursday. The specialty chemicals company reported $0.13 EPS for the quarter, missing the consensus estimate of $0.15 by ($0.02), FiscalAI reports. Olin had a negative return on equity of 4.76% and a negative net margin of 2.08%. The business had revenue of $1.75 billion for the quarter, compared to analyst estimates of $1.83 billion.

Olin Stock Performance

NYSE:OLN traded down $0.44 during mid-day trading on Thursday, hitting $16.03. 4,835,495 shares of the company's stock traded hands, compared to its average volume of 3,157,294. The firm has a market capitalization of $1.83 billion, a price-to-earnings ratio of -13.04 and a beta of 1.23. The firm has a 50 day moving average of $16.52 and a two-hundred day moving average of $22.34. The company has a current ratio of 1.42, a quick ratio of 0.87 and a debt-to-equity ratio of 1.77. Olin has a 12 month low of $14.64 and a 12 month high of $30.46.

Olin Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 11th. Investors of record on Thursday, August 27th were paid a dividend of $0.20 per share. The ex-dividend date was Thursday, August 27th. This represents a $0.80 annualized dividend and a yield of 5.0%. Olin's dividend payout ratio is presently -65.04%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on OLN shares. Truist Financial lowered their price objective on Olin from $20.00 to $15.00 and set a "hold" rating on the stock in a report on Tuesday, October 20th. Citigroup reduced their target price on Olin from $19.00 to $17.00 and set a "neutral" rating for the company in a report on Wednesday, September 30th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Olin in a research report on Wednesday, August 19th. KeyCorp began coverage on Olin in a report on Friday, September 11th. They set an "overweight" rating and a $26.00 price target on the stock. Finally, Wall Street Zen lowered shares of Olin from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 8th. One analyst has rated the stock with a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and an average price target of $20.07.

Olin Company Profile

Olin Corporation NYSE: OLN is a global manufacturer of chemicals and ammunition. The company operates through three primary businesses: Chlor Alkali Products and Vinyls, Epoxy, and Winchester.

Its Chlor Alkali Products and Vinyls business produces chlorine, caustic soda, hydrochloric acid, bleach products, hydrogen, chlorinated organic chemicals and other related materials used in industrial, water-treatment, construction and consumer applications. Olin's Epoxy business manufactures epoxy resins, intermediates and other specialty materials used in coatings, adhesives, composites, electronics and infrastructure-related applications.

Through its Winchester business, Olin produces and distributes sporting ammunition, reloading components, and small-caliber ammunition for law enforcement and military customers.

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