Stepan (NYSE:SCL) Stock Price Down 9.5% After Earnings Miss

Key Points

• Stepan Company's stock dropped 9.5% to $50.00 following an earnings report that missed analyst expectations, with EPS at $0.52 versus a consensus estimate of $0.92.
• The company reported revenues of $594.69 million, slightly below analyst estimates of $598.25 million, but achieved a 6.9% year-over-year increase.
• Stepan announced a quarterly dividend of $0.385, with an annualized yield of 2.99%, to be paid on September 15th to shareholders of record.

Shares of Stepan Company (NYSE:SCL - Get Free Report) traded down 9.5% during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $47.94 and last traded at $50.00. 31,637 shares were traded during mid-day trading, a decline of 75% from the average session volume of 124,790 shares. The stock had previously closed at $55.24.

The basic materials company reported $0.52 EPS for the quarter, missing the consensus estimate of $0.92 by ($0.40). Stepan had a return on equity of 4.78% and a net margin of 2.57%. The company had revenue of $594.69 million during the quarter, compared to analysts' expectations of $598.25 million. During the same period last year, the company earned $0.41 earnings per share. The business's revenue for the quarter was up 6.9% compared to the same quarter last year.

Stepan Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 29th will be paid a dividend of $0.385 per share. This represents a $1.54 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Friday, August 29th. Stepan's dividend payout ratio is presently 62.60%.

Analyst Ratings Changes

Separately, Wall Street Zen raised shares of Stepan from a "hold" rating to a "buy" rating in a research note on Friday, June 27th.

Institutional Investors Weigh In On Stepan

Several institutional investors and hedge funds have recently bought and sold shares of the business. Parallel Advisors LLC raised its stake in Stepan by 45.4% during the second quarter. Parallel Advisors LLC now owns 589 shares of the basic materials company's stock valued at $32,000 after buying an additional 184 shares during the last quarter. Sterling Capital Management LLC boosted its holdings in shares of Stepan by 781.4% in the fourth quarter. Sterling Capital Management LLC now owns 617 shares of the basic materials company's stock worth $40,000 after buying an additional 547 shares during the last quarter. GAMMA Investing LLC boosted its holdings in shares of Stepan by 231.4% in the second quarter. GAMMA Investing LLC now owns 865 shares of the basic materials company's stock worth $47,000 after buying an additional 604 shares during the last quarter. State of Wyoming purchased a new position in shares of Stepan in the first quarter worth approximately $50,000. Finally, Versant Capital Management Inc boosted its holdings in shares of Stepan by 124.3% in the first quarter. Versant Capital Management Inc now owns 1,025 shares of the basic materials company's stock worth $56,000 after buying an additional 568 shares during the last quarter. Hedge funds and other institutional investors own 82.70% of the company's stock.

Stepan Stock Performance

The company has a quick ratio of 0.79, a current ratio of 1.35 and a debt-to-equity ratio of 0.31. The company has a market cap of $1.13 billion, a PE ratio of 19.78 and a beta of 1.01. The business's fifty day moving average is $55.89 and its 200-day moving average is $56.48.

Stepan Company Profile

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products worldwide. It operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used in consumer and industrial cleaning and disinfection products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, and lubricating ingredients.