Ascent Industries (NASDAQ:ACNT) Releases Quarterly Earnings Results

Ascent Industries (NASDAQ:ACNT) released its quarterly earnings results on Wednesday. The company reported $0.15 EPS for the quarter, FiscalAI reports. The business had revenue of $27.14 million for the quarter. Ascent Industries had a negative net margin of 5.31% and a negative return on equity of 2.72%.

Here are the key takeaways from Ascent Industries’ conference call:

• Sales and adjusted EBITDA rose sharply: Q3 net sales increased 37.8% year over year to $27.1 million, including 26.3% organic growth, while adjusted EBITDA grew to $3.5 million from $1.4 million a year ago. Adjusted EBITDA margin expanded to 13% from 7%.
• Commercial activity and efficiency efforts advanced: The active sales pipeline reached about $135 million, nearly 60% above a year ago, and Q3 wins represented approximately $2.8 million in annualized revenue. The company remains on track for $3 million–$5 million in annualized gross-profit improvements at run rate by year-end.
• Cash generation and liquidity improved: Ascent generated approximately $2.2 million of operating cash in Q3, ended September with $28.7 million in cash and no revolver borrowings, and received a $4.55 million escrow release after quarter-end.
• Margins and quarterly results remain exposed to headwinds: Gross margin improved sequentially but remained below the year-ago level, primarily due to higher material costs, and management expects earnings to compress in Q4 amid seasonality and product mix. Executives said the legacy business’s seasonal pattern will persist until the company grows and changes its business mix.

Ascent Industries Trading Up 5.5%

NASDAQ ACNT traded up $0.76 during mid-day trading on Thursday, reaching $14.49. 9,155 shares of the stock were exchanged, compared to its average volume of 71,788. The stock has a market capitalization of $130.60 million, a PE ratio of -32.21 and a beta of 0.49. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.63 and a current ratio of 4.33. Ascent Industries has a 1-year low of $12.09 and a 1-year high of $17.92. The business’s fifty day simple moving average is $14.32 and its 200 day simple moving average is $14.65.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings raised Ascent Industries from a “sell (d-)” rating to a “sell (d)” rating in a report on Friday, August 28th. One research analyst has rated the stock with a Sell rating. According to data from MarketBeat, the stock has an average rating of “Sell”.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Bard Associates Inc. purchased a new position in Ascent Industries during the second quarter worth about $4,839,000. Heartland Advisors Inc. purchased a new stake in Ascent Industries in the 2nd quarter valued at about $3,015,000. De Lisle Partners LLP purchased a new stake in Ascent Industries in the 2nd quarter valued at about $2,976,000. BlackRock Inc. purchased a new stake in Ascent Industries in the 2nd quarter valued at about $2,638,000. Finally, Expect Equity LLC acquired a new position in shares of Ascent Industries during the 2nd quarter valued at about $1,703,000. Hedge funds and other institutional investors own 26.05% of the company’s stock.

Ascent Industries Company Profile

Ascent Industries Company (NASDAQ: ACNT) is a diversified industrial manufacturer serving customers primarily in the United States. The company’s operations have historically focused on specialty chemicals and tubular products, with applications spanning industrial, agricultural, automotive, construction and other commercial markets.

Its specialty chemicals business produces and sells products such as pyridine and pyridine derivatives, sulfuric acid and other chemical compounds used in agricultural, pharmaceutical, industrial and manufacturing applications.