Koppers (NYSE:KOP) Trading Down 4.8% on Disappointing Earnings

Key Points

• Koppers Holdings Inc. shares fell 4.8% to $27.47 after reporting disappointing earnings, including an EPS of $1.48 that missed analysts' expectations of $1.49.
• The company experienced a 10.4% decline in revenue year-over-year, bringing in $504.80 million compared to the estimated $540.30 million.
• Koppers has declared a quarterly dividend of $0.08 per share, with a payout ratio of 44.44%, scheduled for payment on September 15th.

Koppers Holdings Inc. (NYSE:KOP - Get Free Report)'s share price was down 4.8% on Monday following a dissappointing earnings announcement. The stock traded as low as $27.61 and last traded at $27.47. Approximately 23,433 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 150,506 shares. The stock had previously closed at $28.84.

The specialty chemicals company reported $1.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.49 by ($0.01). Koppers had a net margin of 0.76% and a return on equity of 17.43%. The company had revenue of $504.80 million during the quarter, compared to analyst estimates of $540.30 million. During the same quarter last year, the company posted $1.36 EPS. The business's revenue for the quarter was down 10.4% compared to the same quarter last year.

Koppers Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 29th will be paid a $0.08 dividend. The ex-dividend date is Friday, August 29th. This represents a $0.32 dividend on an annualized basis and a yield of 1.1%. Koppers's dividend payout ratio (DPR) is presently 44.44%.

Analyst Upgrades and Downgrades

Several research firms have issued reports on KOP. B. Riley restated a "buy" rating and issued a $50.00 price target (down from $55.00) on shares of Koppers in a research report on Monday. Barrington Research set a $55.00 price target on shares of Koppers and gave the company an "outperform" rating in a report on Friday, August 8th.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Byrne Asset Management LLC bought a new stake in Koppers in the 1st quarter valued at about $38,000. Quarry LP purchased a new position in shares of Koppers in the fourth quarter worth $40,000. Copeland Capital Management LLC bought a new position in shares of Koppers during the first quarter valued at approximately $49,000. GAMMA Investing LLC raised its holdings in Koppers by 112.9% in the first quarter. GAMMA Investing LLC now owns 1,835 shares of the specialty chemicals company's stock worth $51,000 after purchasing an additional 973 shares in the last quarter. Finally, AlphaQuest LLC increased its holdings in shares of Koppers by 97,600.0% during the first quarter. AlphaQuest LLC now owns 1,954 shares of the specialty chemicals company's stock valued at $55,000 after acquiring an additional 1,952 shares in the last quarter. Institutional investors own 92.75% of the company's stock.

Koppers Price Performance

The company has a market capitalization of $584.11 million, a PE ratio of 41.14 and a beta of 1.40. The company has a debt-to-equity ratio of 1.83, a current ratio of 2.60 and a quick ratio of 1.11. The firm has a 50-day moving average of $32.46 and a 200 day moving average of $29.86.

Koppers Company Profile

Koppers Holdings Inc provides treated wood products, wood preservation chemicals, and carbon compounds in the United States, Australasia, Europe, and internationally. The company operates through Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC), and Carbon Materials and Chemicals (CMC) segments.