NEW YORK - Ecovyst Inc. (NYSE: ECVT) reported a lower-than-expected first-quarter profit, missing analyst estimates with adjusted earnings per share (EPS) of $0.04, $0.02 shy of the $0.06 consensus. The company's revenue for the quarter was $160.5 million, also falling short of the expected $169.16 million.
Despite the earnings miss, the company saw a slight dip in sales compared to the same period last year, with first-quarter revenue decreasing marginally from $160.9 million in the first quarter of 2023. This was attributed to higher sales volume in virgin sulfuric acid and regeneration services, which were offset by lower sales of advanced silicas and the impact of lower sulfur costs being passed through.
Ecovyst's net income for the quarter stood at $1.2 million, a notable improvement from a net loss of $1.5 million in the year-ago quarter. The company cited solid results and year-over-year growth, driven by positive demand across most of its end use exposures. CEO Kurt J. Bitting highlighted the 13% increase in Ecoservices' Adjusted EBITDA compared to the first quarter of 2023, benefiting from higher sales volume.
Looking ahead, Ecovyst provided full-year 2024 guidance with sales projected to be between $715 million and $755 million, which brackets the analyst consensus of $737.6 million. The company's outlook suggests a potential for growth, as the midpoint of the guidance range is slightly below the consensus estimate.
In the first quarter, Ecovyst's Adjusted EBITDA rose 6% to $45.5 million, with a margin of 24.7%. The company also reported strong cash generation, which contributed to a reduction in the net debt to net income ratio to 10.4x and the net debt leverage ratio to 2.9x.
The company's regeneration services and virgin sulfuric acid sales are expected to continue benefiting from high refinery utilization and demand for materials supporting green infrastructure. Additionally, the Zeolyst Joint Venture is anticipated to drive growth with increased demand for catalysts used in sustainable fuel production and custom catalyst applications.
While the company did not disclose any stock movement percentage following the earnings release, the financial results and forward-looking statements provide a comprehensive view of Ecovyst's performance and expectations for the coming year.
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