| Over a month ago | ||||
AdvanSix CEO Erin Kane… AdvanSix CEO Erin Kane told CL King in investor meetings that she sees continued cyclical demand recovery in early 2021, based on rebounding global economies, strong agricultural demand and internal efficiency gains, analyst David Silver tells investors in a research note. Company operations have not been materially impacted by force majeure announcements across the U.S. Gulf Coast beginning in mid-February in response to unexpected freezing conditions in Texas and elsewhere, Silver says, citing Kane's comments. Silver made no change to his Buy rating or $32 price target. | ||||
CL King holds a… CL King holds a conference call with CEO Kane on March 3. | ||||
"We are targeting a… "We are targeting a record year of production output in 2021 supporting higher earnings and robust cash flow while making continued progress on our sustainability initiatives. Our strategic priorities remain consistent as we support continued operational excellence and improving through-cycle profitability, enhancing our portfolio resiliency through differentiated product growth and mix optimization, and being strong and disciplined stewards of capital. We are gaining momentum and remain confident that AdvanSix is well positioned to deliver attractive long-term shareholder value," added CEO Kane. FY21 outlook: Expect near-term improvement in nylon demand while navigating COVID environment; Expect increased ammonium sulfate fertilizer demand through 2021 planting season supported by improvement in agricultural industry fundamentals; Expect favorable acetone industry supply and demand balance to continue; Continue to expect Capital Expenditures to be $80M-$90M in 2021; Continue to expect pre-tax income impact of planned plant turnarounds to be $25M-$30M in 2021; Expect to receive approximately $12M cash tax refund in the first half of 2021 related to CARES Act. | ||||
Reports Q4 revenue $340M,… Reports Q4 revenue $340M, consensus $292M. "Our strong fourth quarter and full year results demonstrate our team's resilience, perseverance and strength of execution. For the full year, we expanded margins, generated higher earnings and cash flow, and reduced leverage levels as we navigated the challenging macro environment," said Erin Kane, president and CEO of AdvanSix. "Sales volume grew compared to the prior year reflecting the strength of our business model, low-cost position and diversity of our product portfolio. In 2020, we proactively drove approximately $26 million of productivity and cost savings to mitigate the impact of COVID on our business while continuing to invest for future growth in differentiated products and high-return capital projects." | ||||
| Over a quarter ago | ||||
As previously reported,… As previously reported, CL King analyst David Silver upgraded AdvanSix to Buy from Neutral with a $28 price target. The analyst, who forecasts double-digit nylon shipment growth for the next few years, argues following a meeting with company that AdvanSix "appears determined to drive underlying earnings notably higher through an array of initiatives." His "main takeaway" from last week's roadshow with senior management "had less to do with what management said and more to do with the level of investor interest," added Silver. He has raised his above-consensus Q4 and 2021 EPS estimates following the meetings, Silver noted. | ||||
CL King analyst David… CL King analyst David Silver upgraded AdvanSix to Buy from Neutral with a $28 price target. | |
Reports Q3 revenue $282M,… Reports Q3 revenue $282M, consensus $266.77M. Q3 EPS includes $20M pre-tax income impact of planned plant turnaround. "Our diverse product portfolio and global low-cost position continue to serve us well as we navigate through the current environment," said Erin Kane, president and CEO of AdvanSix. "We have seen nylon volume returning to pre-COVID levels and we continue to optimize our mix across end uses, applications and geographies through the recovery. The performance of the remainder of our portfolio, including ammonium sulfate, acetone and other high-value intermediates, remains resilient complementing ongoing benefits from our focused cost management and high-return capital investments. We generated higher cash flow in the quarter, as anticipated, supported by efficient working capital performance and reduced capital expenditures." | |
Supported by working… Supported by working capital improvements and cash tax benefits associated with the CARES Act. | |
A decrease of… A decrease of approximately $65M versus 2019. | |
Reports Q2 revenue $233M,… Reports Q2 revenue $233M, consensus $281.3M. |