Ascent Industries (NASDAQ:ACNT) Releases Earnings Results

Ascent Industries (NASDAQ:ACNT) announced its quarterly earnings data on Wednesday. The company reported $0.15 earnings per share for the quarter, FiscalAI reports. Ascent Industries had a negative return on equity of 1.11% and a negative net margin of 1.04%. The company had revenue of $27.14 million for the quarter.

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 0.6%

Shares of NASDAQ ACNT traded up $0.07 during trading hours on Friday, hitting $13.66. The company’s stock had a trading volume of 6,769 shares, compared to its average volume of 71,710. Ascent Industries has a 12 month low of $12.09 and a 12 month high of $17.92. The stock has a market cap of $123.11 million, a price-to-earnings ratio of -136.83 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. The business has a 50-day simple moving average of $14.28 and a 200-day simple moving average of $14.63.

Institutional Trading of Ascent Industries

Several large investors have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC lifted its holdings in Ascent Industries by 11.5% in the first quarter. Renaissance Technologies LLC now owns 329,000 shares of the company’s stock worth $4,379,000 after buying an additional 33,900 shares during the period. Bard Associates Inc. purchased a new position in shares of Ascent Industries during the 2nd quarter worth approximately $4,839,000. Heartland Advisors Inc. purchased a new position in shares of Ascent Industries during the 2nd quarter worth approximately $3,015,000. De Lisle Partners LLP bought a new position in shares of Ascent Industries in the 2nd quarter worth approximately $2,976,000. Finally, Russell Investments Group Ltd. raised its position in shares of Ascent Industries by 1.2% in the 3rd quarter. Russell Investments Group Ltd. now owns 182,681 shares of the company’s stock worth $2,576,000 after acquiring an additional 2,089 shares in the last quarter. Institutional investors own 26.05% of the company’s stock.

Analyst Upgrades and Downgrades

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

About Ascent Industries

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.