Ascent Industries (NASDAQ:ACNT) Announces Quarterly Earnings Results

Ascent Industries (NASDAQ:ACNT) released its quarterly earnings results on Tuesday. The company reported $0.07 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 during 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 Price Performance

Shares of ACNT stock traded down $0.15 during trading hours on Tuesday, hitting $15.38. 137,586 shares of the company’s stock were exchanged, compared to its average volume of 89,228. The firm has a market cap of $139.04 million, a P/E ratio of 118.32 and a beta of 0.52. The firm has a 50 day moving average of $14.57 and a two-hundred day moving average of $14.74. Ascent Industries has a fifty-two week low of $11.62 and a fifty-two 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.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Ascent Industries in a research note on Friday, July 24th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the stock has a consensus rating of “Sell”.

Hedge Funds Weigh In On Ascent Industries

Several institutional investors and hedge funds have recently bought and sold shares of the company. Quadrature Capital Ltd boosted its position in shares of Ascent Industries by 128.2% during the fourth quarter. Quadrature Capital Ltd now owns 24,889 shares of the company’s stock worth $403,000 after buying an additional 13,981 shares during the period. AQR Capital Management LLC boosted its stake in shares of Ascent Industries by 67.7% in the 4th quarter. AQR Capital Management LLC now owns 23,986 shares of the company’s stock valued at $388,000 after buying an additional 9,685 shares during the period. Russell Investments Group Ltd. boosted its stake in shares of Ascent Industries by 2,171.7% in the 4th quarter. Russell Investments Group Ltd. now owns 44,935 shares of the company’s stock valued at $727,000 after buying an additional 42,957 shares during the period. Rothschild Wealth LLC acquired a new position in shares of Ascent Industries during the fourth quarter worth about $389,000. Finally, Squarepoint Ops LLC acquired a new position in Ascent Industries during the 4th quarter worth approximately $331,000. 26.05% of the stock is currently owned by institutional investors and hedge funds.

About Ascent Industries

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.