Orion (NYSE:OEC) Posts Quarterly Earnings Results

Key Points

• Orion missed profit expectations for the quarter, posting EPS of -$0.11 versus analyst estimates of $0.07. Despite the miss, revenue came in above expectations at $459.5 million versus $434.3 million forecast.
• The stock rose 6.6% to $7.63 after the earnings release, with trading volume running slightly above average. Orion also remains well below its 12-month high of $12.10.
• The company declared a quarterly dividend of $0.0207 per share, or about $0.08 annualized, for a yield of 1.1%. Analysts remain cautious overall, with a consensus rating of Strong Sell and an average price target of $5.92.

Orion (NYSE:OEC - Get Free Report) issued its quarterly earnings data on Wednesday. The specialty chemicals company reported ($0.11) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.07 by ($0.18), FiscalAI reports. Orion had a positive return on equity of 2.23% and a negative net margin of 4.98%.The company had revenue of $459.50 million for the quarter, compared to analysts' expectations of $434.31 million.

Orion Trading Up 6.6%

OEC stock traded up $0.47 on Friday, reaching $7.63. The company's stock had a trading volume of 497,256 shares, compared to its average volume of 481,573. Orion has a 12-month low of $4.34 and a 12-month high of $12.10. The business has a fifty day simple moving average of $6.20 and a two-hundred day simple moving average of $5.82. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.59 and a current ratio of 1.00. The firm has a market cap of $430.31 million, a PE ratio of -4.77 and a beta of 0.98.

Orion Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Wednesday, June 10th will be paid a $0.0207 dividend. The ex-dividend date of this dividend is Wednesday, June 10th. This represents a $0.08 dividend on an annualized basis and a yield of 1.1%. Orion's dividend payout ratio (DPR) is presently -5.00%.

Analyst Upgrades and Downgrades

Several analysts have issued reports on OEC shares. UBS Group increased their target price on shares of Orion from $7.00 to $7.50 and gave the stock a "neutral" rating in a research note on Friday. Weiss Ratings reiterated a "sell (d)" rating on shares of Orion in a report on Tuesday, April 21st. Zacks Research upgraded Orion from a "strong sell" rating to a "hold" rating in a research report on Monday, April 20th. Mizuho boosted their price objective on shares of Orion from $4.50 to $5.25 and gave the stock an "underperform" rating in a report on Wednesday, February 18th. Finally, Wall Street Zen upgraded Orion from a "sell" rating to a "hold" rating in a research report on Thursday, April 9th. Two equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Strong Sell" and a consensus price target of $5.92.

Institutional Investors Weigh In On Orion

Institutional investors and hedge funds have recently made changes to their positions in the company. Quarry LP lifted its holdings in shares of Orion by 430.9% during the 4th quarter. Quarry LP now owns 5,861 shares of the specialty chemicals company's stock valued at $31,000 after buying an additional 4,757 shares during the period. Public Employees Retirement System of Ohio grew its holdings in Orion by 277.5% during the 4th quarter. Public Employees Retirement System of Ohio now owns 11,147 shares of the specialty chemicals company's stock valued at $59,000 after buying an additional 8,194 shares in the last quarter. Tower Research Capital LLC TRC increased its position in Orion by 321.8% in the second quarter. Tower Research Capital LLC TRC now owns 7,382 shares of the specialty chemicals company's stock worth $77,000 after purchasing an additional 5,632 shares during the last quarter. XTX Topco Ltd bought a new stake in shares of Orion in the 4th quarter worth about $82,000. Finally, Glenmede Investment Management LP purchased a new position in shares of Orion during the third quarter valued at approximately $89,000. Institutional investors own 94.33% of the company's stock.

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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