Orion (NYSE:OEC) Issues Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• Orion reported quarterly EPS of $0.14, missing analysts’ $0.16 consensus estimate by $0.02, while revenue of $500.9 million exceeded expectations of $474.4 million.
• Shares fell to $6.54 following the results. Orion also declared a quarterly dividend of $0.0207 per share, representing an annualized dividend of about $0.08 and a 1.3% yield.
• Analyst sentiment remains weak: the stock has an average rating of “Strong Sell” from MarketBeat, with an average price target of $5.92.

Orion (NYSE:OEC - Get Free Report) announced its quarterly earnings data on Wednesday. The specialty chemicals company reported $0.14 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.16 by ($0.02), FiscalAI reports. Orion had a positive return on equity of 2.23% and a negative net margin of 4.98%.The firm had revenue of $500.90 million for the quarter, compared to analyst estimates of $474.43 million.

Orion Price Performance

Shares of Orion stock traded down $0.12 during trading on Wednesday, hitting $6.54. 468,824 shares of the stock traded hands, compared to its average volume of 589,707. The stock has a market cap of $368.51 million, a price-to-earnings ratio of -4.08 and a beta of 1.00. The firm's fifty day moving average is $6.86 and its 200-day moving average is $6.57. Orion has a 52 week low of $4.34 and a 52 week high of $11.20. The company has a quick ratio of 0.62, a current ratio of 1.00 and a debt-to-equity ratio of 1.75.

Orion Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Monday, July 6th will be given a dividend of $0.0207 per share. The ex-dividend date is Monday, July 6th. This represents a $0.08 annualized dividend and a dividend yield of 1.3%. Orion's dividend payout ratio (DPR) is -5.00%.

Hedge Funds Weigh In On Orion

A number of institutional investors have recently added to or reduced their stakes in OEC. Royal Bank of Canada increased its stake in Orion by 10.7% during the 1st quarter. Royal Bank of Canada now owns 283,138 shares of the specialty chemicals company's stock valued at $3,661,000 after purchasing an additional 27,442 shares in the last quarter. AQR Capital Management LLC raised its holdings in Orion by 86.2% in the 1st quarter. AQR Capital Management LLC now owns 149,128 shares of the specialty chemicals company's stock worth $1,928,000 after purchasing an additional 69,054 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Orion by 3.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 33,857 shares of the specialty chemicals company's stock worth $438,000 after buying an additional 1,097 shares during the period. Dynamic Technology Lab Private Ltd bought a new position in shares of Orion during the 1st quarter valued at about $137,000. Finally, Jane Street Group LLC lifted its position in Orion by 202.7% during the first quarter. Jane Street Group LLC now owns 121,078 shares of the specialty chemicals company's stock valued at $1,566,000 after purchasing an additional 81,079 shares during the last quarter. Institutional investors own 94.33% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently issued reports on OEC. UBS Group upped their price objective on Orion from $7.00 to $7.50 and gave the company a "neutral" rating in a research note on Friday, May 8th. Wall Street Zen lowered shares of Orion from a "hold" rating to a "sell" rating in a report on Saturday. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Orion in a research note on Friday, July 17th. Finally, Zacks Research lowered shares of Orion from a "hold" rating to a "strong sell" rating in a research note on Monday, July 6th. One research analyst has rated the stock with a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Strong Sell" and an average target price of $5.92.

About Orion

Orion Engineered Carbons SA, operating as Orion NYSE: OEC, is a global producer of carbon black, a critical performance additive used to enhance the strength, durability and conductivity of various materials. The company’s products chiefly serve the tire and rubber industry, where carbon black imparts wear resistance and longevity, as well as the plastics, coatings, inks and battery components markets, where specialty grades deliver tailored conductivity and color properties.

Orion’s product portfolio is organized into two core segments: Rubber and Specialty and Chemical Specialties.

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