Quaker Houghton (KWR) Earnings Preview: What to Expect on October 31st

## Quaker Houghton (KWR) Earnings Preview: What to Expect on October 31st

Get ready for the upcoming Quaker Houghton (KWR) earnings release on Thursday, October 31st, 2024. Investors are eagerly anticipating the announcement, hoping for both an earnings beat and positive guidance for the next quarter. While earnings performance is crucial, it’s important to remember that market reactions often hinge on guidance.

Analysts are projecting an earnings per share (EPS) of $2.15 for the quarter. To understand the context of this expectation, let’s look back at Quaker Houghton’s recent performance and the resulting share price fluctuations.

### Quaker Houghton’s Earnings Track Record:

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Q2 2024:

The company missed EPS by $0.08, resulting in a 2.6% drop in the share price the following day.
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Q1 2024:

The company surpassed estimates, leading to a 4% decline in share price.
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Q4 2023:

The company exceeded expectations, resulting in a 1% drop in share price.
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Q3 2023:

The company beat estimates, leading to an 11% increase in share price.

As you can see, the correlation between earnings performance and share price movement isn’t always straightforward. This highlights the importance of paying close attention to the company’s guidance and overall narrative surrounding the results.

### Analyst Opinions on Quaker Houghton:

Understanding market sentiment and expectations within the industry is crucial for investors. Here’s a breakdown of what analysts are saying about Quaker Houghton:

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Consensus Rating:

Analysts have given Quaker Houghton a consensus rating of

Buy

, based on two ratings.
*

Average One-Year Price Target:

Analysts are projecting a potential 26.65% upside, with an average one-year price target of $192.5.

### Comparing Quaker Houghton with its Peers:

To gain further insight into Quaker Houghton’s market positioning, let’s compare it to three other prominent industry players: Minerals Technologies, Perimeter Solutions, and Aspen Aerogels.

*

Minerals Technologies:

Analysts have a

Buy

rating on Minerals Technologies with an average one-year price target of $97.0, implying a potential 36.18% downside.
*

Perimeter Solutions:

Analysts have a

Neutral

rating on Perimeter Solutions with an average one-year price target of $14.5, suggesting a potential 90.46% downside.
*

Aspen Aerogels:

Analysts maintain a

Buy

rating on Aspen Aerogels with an average one-year price target of $30.14, indicating a potential 80.17% downside.

### Key Takeaways from Peer Analysis:

| Company | Consensus Rating | Revenue Growth | Gross Profit | Return on Equity |
|———————–|——————-|——————-|—————|——————|
| Quaker Houghton | Buy | -6.43% | $175.72M | 2.50% |
| Minerals Technologies | Buy | -3.05% | $143.90M | 2.77% |
| Perimeter Solutions | Neutral | 67.17% | $73.27M | 2.04% |
| Aspen Aerogels | Buy | 144.55% | $51.58M | 3.33% |

Key takeaway:

Quaker Houghton ranks at the bottom for Revenue Growth among its peers. It sits in the middle for Gross Profit. For Return on Equity, Quaker Houghton is also at the bottom.

### Unveiling the Story Behind Quaker Houghton:

Quaker Houghton is a leading manufacturer and supplier of a wide range of industrial process fluids. Their product portfolio encompasses metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die-cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals. The company operates in four geographic segments: America, EMEA, Asia/Pacific, and Global Specialty Businesses, with the majority of its revenue coming from America.

### Breaking Down Quaker Houghton’s Financial Performance:

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Market Capitalization:

Quaker Houghton’s market capitalization is below industry averages, which could be attributed to factors like growth expectations or operational capacity.
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Revenue Trend:

Over the past three months, Quaker Houghton has experienced a decline in revenue growth of approximately -6.43%, reflecting a decrease in top-line earnings. This growth rate trails behind the average among peers in the Materials sector.
*

Net Margin:

Despite the revenue challenges, Quaker Houghton boasts an impressive net margin of 7.5%, exceeding industry averages and demonstrating strong profitability and effective cost management.
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Return on Equity (ROE):

The company’s ROE also surpasses industry benchmarks, reaching 2.5%. This highlights robust financial management and efficient use of shareholder equity capital.
*

Return on Assets (ROA):

Quaker Houghton’s ROA surpasses industry standards, indicating exceptional financial performance with an impressive 1.29%. This highlights the company’s effective utilization of assets for optimal returns.
*

Debt Management:

With a below-average debt-to-equity ratio of 0.54, Quaker Houghton demonstrates a balanced approach to debt management, signifying a prudent financial strategy.

Don’t miss out on Quaker Houghton’s earnings release on October 31st. Be sure to check out our earnings calendar on our site to stay updated on all earnings releases for Quaker Houghton and other companies.