Ascent Industries (NASDAQ:ACNT) Posts Quarterly Earnings Results

by · The Cerbat Gem

Ascent Industries (NASDAQ:ACNT – Get Free Report) announced its earnings results on Tuesday. The company reported $0.07 earnings per share (EPS) for the quarter, Zacks reports. Ascent Industries had a net margin of 1.54% and a negative return on equity of 4.37%. The firm had revenue of $25.67 million for the quarter.

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

  • Second-quarter momentum strengthened: Net sales rose 37.6% year over year to $25.7 million, pounds shipped increased 15.2%, and adjusted EBITDA from continuing operations improved to $1.5 million from a $0.3 million loss. Legacy sales grew approximately 28% excluding Midwest Graphic Sales.
  • Commercial execution continued to improve, with 17 opportunities converted into approximately $5.8 million of annualized revenue and the active project pipeline reaching a record $140 million. Midwest Graphic Sales contributed $1.9 million of revenue after its May 4 acquisition and was immediately accretive to adjusted EBITDA.
  • Management remains on track for $3 million-$5 million of annualized gross-profit improvement from sourcing, manufacturing, and network optimization initiatives, including a debottlenecking project that added more than 500,000 pounds of annual capacity.
  • Revenue growth is not yet translating fully into profitability: second-quarter gross margin declined to 21.6% from 26.1%, pressured by petroleum-based raw-material and freight inflation, conversion costs, production timing, and mix. Management expects a moderate gross-margin contraction in the fourth quarter due to seasonality and program turnover.
  • Cash conversion remains a key concern, with first-half operating activities using $7.7 million and the cash conversion cycle rising to 75 days. Management is targeting a five-day improvement, which it estimates could release approximately $1 million-$1.5 million of cash, while prioritizing liquidity and working-capital improvement before additional acquisitions or share repurchases.

Ascent Industries Trading Down 1.0%

ACNT traded down $0.15 during trading on Tuesday, reaching $15.38. The company had a trading volume of 137,586 shares, compared to its average volume of 89,228. The stock has a market cap of $139.04 million, a P/E ratio of 118.32 and a beta of 0.52. The business has a 50 day simple moving average of $14.57 and a 200-day simple moving average of $14.74. Ascent Industries has a 52 week low of $11.62 and a 52 week high of $17.92. The company has a quick ratio of 7.82, a current ratio of 8.69 and a debt-to-equity ratio of 0.01.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reiterated a “sell (d+)” rating on shares of Ascent Industries in a research report on Friday, July 24th. One analyst has rated the stock with a Sell rating, According to MarketBeat, Ascent Industries presently has an average rating of “Sell”.

Read Our Latest Research Report on Ascent Industries

Institutional Investors Weigh In On Ascent Industries

Hedge funds and other institutional investors have recently made changes to their positions in the company. Goldman Sachs Group Inc. bought a new stake in shares of Ascent Industries in the 1st quarter worth about $227,000. Empowered Funds LLC grew its holdings in Ascent Industries by 6.5% during the 1st quarter. Empowered Funds LLC now owns 47,620 shares of the company’s stock valued at $603,000 after purchasing an additional 2,927 shares during the last quarter. Jane Street Group LLC bought a new position in Ascent Industries during the 1st quarter valued at about $269,000. Geode Capital Management LLC raised its position in Ascent Industries by 91.9% in the 2nd quarter. Geode Capital Management LLC now owns 194,433 shares of the company’s stock worth $2,452,000 after purchasing an additional 93,125 shares during the period. Finally, JPMorgan Chase & Co. raised its position in Ascent Industries by 121,970.0% in the 2nd quarter. JPMorgan Chase & Co. now owns 12,207 shares of the company’s stock worth $154,000 after purchasing an additional 12,197 shares during the period. Hedge funds and other institutional investors own 26.05% of the company’s stock.

Ascent Industries Company Profile

(Get Free Report)

Ascent Industries Co an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries.

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