Koppers (NYSE:KOP) Shares 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) shares dropped 4.8% during mid-day trading on Monday following a weaker than expected 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 the consensus estimate of $1.49 by ($0.01). The firm had revenue of $504.80 million during the quarter, compared to analyst estimates of $540.30 million. Koppers had a net margin of 0.76% and a return on equity of 17.43%. The business's quarterly revenue was down 10.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.36 earnings per share.

Koppers Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 29th will be issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, August 29th. Koppers's dividend payout ratio (DPR) is currently 44.44%.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. 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. B. Riley reiterated a "buy" rating and issued a $50.00 price target (down previously from $55.00) on shares of Koppers in a report on Monday.

Institutional Investors Weigh In On Koppers

Several institutional investors and hedge funds have recently made changes to their positions in KOP. Quarry LP purchased a new position in Koppers in the fourth quarter valued at approximately $40,000. Byrne Asset Management LLC acquired a new stake in shares of Koppers during the first quarter worth approximately $38,000. Copeland Capital Management LLC bought a new position in shares of Koppers in the 1st quarter worth about $49,000. GAMMA Investing LLC boosted its holdings in shares of Koppers by 112.9% in the 1st quarter. GAMMA Investing LLC now owns 1,835 shares of the specialty chemicals company's stock valued at $51,000 after buying an additional 973 shares during the period. Finally, AlphaQuest LLC boosted its holdings in shares of Koppers by 97,600.0% in the 1st quarter. AlphaQuest LLC now owns 1,954 shares of the specialty chemicals company's stock valued at $55,000 after buying an additional 1,952 shares during the period. 92.75% of the stock is currently owned by hedge funds and other institutional investors.

Koppers Price Performance

The company has a quick ratio of 1.11, a current ratio of 2.60 and a debt-to-equity ratio of 1.83. The company has a market capitalization of $605.64 million, a P/E ratio of 42.66 and a beta of 1.40. The business has a 50 day simple moving average of $32.51 and a 200-day simple moving average of $29.87.

About Koppers

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.