Koppers Holdings (KOP) Earnings Preview: What to Watch for on November 8th
Investors are gearing up for Koppers Holdings Inc. (KOP) to release its latest quarterly earnings report on Friday, November 8th, 2024. The market anticipates an earnings per share (EPS) of $1.34, and hopes are high for the company to surpass estimates and deliver encouraging guidance for the upcoming quarter.
For new investors, understanding the significance of guidance is crucial. It can have a considerable impact on stock prices, as it reflects the company’s future outlook and prospects.
A Look Back at Past Earnings
Koppers Holdings’s previous earnings release saw the company outperform EPS expectations by $0.09. However, this positive news resulted in a 1.72% drop in the share price during the subsequent trading session. Here’s a breakdown of Koppers Holdings’s past performance and the resulting price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 1.27 | 1.36 | -2.0% |
| Q1 2024 | 0.67 | 0.62 | -17.0% |
| Q4 2023 | 0.70 | 0.67 | -1.0% |
| Q3 2023 | 1.26 | 1.32 | 1.0% |
Performance of Koppers Holdings Shares
As of November 6th, Koppers Holdings shares were trading at $38.98. Over the past 52 weeks, shares have declined by 7.35%. These negative returns are likely a source of concern for long-term shareholders heading into this earnings release.
Analyst Insights on Koppers Holdings
Staying informed about market sentiments and industry expectations is critical for investors. The consensus rating for Koppers Holdings is “Outperform”, based on the opinions of 3 analysts. The average one-year price target is $64.0, suggesting a potential 64.19% upside.
Comparing Ratings with Competitors
To gain further insights into Koppers Holdings’s relative performance expectations and market positioning, let’s compare its analyst ratings and average 1-year price targets with three prominent industry players: Origin Mat, Kronos Worldwide, and Tronox Holdings.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside/Downside |
|—|—|—|—|
| Koppers Holdings | Outperform | $64.0 | 64.19% Upside |
| Origin Mat | Buy | $3.0 | 92.3% Downside |
| Kronos Worldwide | Underperform | $10.0 | 74.35% Downside |
| Tronox Holdings | Outperform | $17.86 | 54.18% Downside |
Peer Comparative Analysis Summary
This peer analysis summary provides a comparative overview of key metrics for Origin Mat, Kronos Worldwide, and Tronox Holdings. It sheds light on their respective standings within the industry, offering valuable insights into their market positions and performance.
| Company | Consensus Rating | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Koppers Holdings | Outperform | -2.43% | $121.60M | 5.28% |
| Origin Mat | Buy | 1.96% | $207K | -4.88% |
| Kronos Worldwide | Underperform | 12.93% | $100.20M | 2.52% |
| Tronox Holdings | Outperform | 21.45% | $128M | -1.31% |
Key Takeaway:
Koppers Holdings ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Koppers Holdings is at the top.Delving into Koppers Holdings’s Background
Koppers Holdings Inc., through its subsidiaries, is a leading manufacturer and supplier of wood products, wood treatment chemicals, and carbon compounds. Its products find applications in diverse markets, including railroad, aluminum and steel, agriculture, utilities, and residential lumber. The company operates through three key business segments:
*
Railroad and Utility Products and Services:
This segment focuses on treated and untreated wood products like crossties for railroads, as well as wood preservation chemicals.*
Performance Chemicals:
This segment delivers wood treatment chemicals and other specialty chemicals.*
Carbon Materials and Chemicals:
This segment specializes in carbon compounds like creosote used in the treatment of wood crossties.The majority of Koppers Holdings’s revenue originates from its railroad and utility products and services segment, with over half of its revenue earned in the United States.
Koppers Holdings’s Economic Impact: An Analysis
Market Capitalization:
Koppers Holdings’s market capitalization is below industry averages, indicating a smaller scale compared to its peers.Negative Revenue Trend:
Analysis of Koppers Holdings’s financials over the past 3 months reveals some challenges. As of June 30, 2024, the company experienced a revenue growth decline of approximately -2.43%, reflecting a decrease in top-line earnings. This revenue growth lag behind its industry peers, and the company’s growth rate is lower than the average for companies in the Materials sector.Net Margin:
Koppers Holdings’s net margin surpasses industry benchmarks at 4.76%, demonstrating efficient cost management and strong financial health.Return on Equity (ROE):
Koppers Holdings’s exceptional ROE of 5.28% significantly exceeds industry averages, showcasing the company’s effective use of equity capital and robust financial health.Return on Assets (ROA):
Koppers Holdings’s ROA surpasses industry standards at 1.41%, highlighting its exceptional financial performance and efficient asset utilization.Debt Management:
Koppers Holdings’s debt-to-equity ratio of 2.12 is below the industry average, indicating a lower reliance on debt financing and a more conservative financial approach.To keep track of all earnings releases for Koppers Holdings, visit their earnings calendar on our site.
