Ascent Industries (NASDAQ:ACNT) Posts Earnings Results

Ascent Industries (NASDAQ:ACNT) posted its earnings results on Tuesday. The company reported $0.07 earnings per share (EPS) for the quarter, Zacks reports. Ascent Industries had a negative net margin of 5.31% and a negative return on equity of 2.68%. 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 Stock Up 1.3%

NASDAQ:ACNT opened at $15.58 on Thursday. The company has a quick ratio of 7.82, a current ratio of 8.69 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $140.84 million, a price-to-earnings ratio of -34.62 and a beta of 0.52. The stock’s fifty day moving average is $14.60 and its two-hundred day moving average is $14.74. Ascent Industries has a 52 week low of $11.62 and a 52 week high of $17.92.

Hedge Funds Weigh In On Ascent Industries

Several institutional investors have recently modified their holdings of the business. Russell Investments Group Ltd. acquired a new position in Ascent Industries during the 3rd quarter worth $25,000. BNP Paribas Financial Markets lifted its position in shares of Ascent Industries by 114.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 1,937 shares of the company’s stock worth $25,000 after purchasing an additional 1,033 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in Ascent Industries in the second quarter valued at approximately $55,000. Bank of America Corp DE increased its position in shares of Ascent Industries by 258.0% during the second quarter. Bank of America Corp DE now owns 4,475 shares of the company’s stock worth $56,000 after purchasing an additional 3,225 shares in the last quarter. Finally, Deutsche Bank AG increased its position in shares of Ascent Industries by 38.2% during the fourth quarter. Deutsche Bank AG now owns 6,626 shares of the company’s stock worth $107,000 after purchasing an additional 1,832 shares in the last quarter. Institutional investors and hedge funds own 26.05% of the company’s stock.

Analyst Ratings Changes

Separately, Weiss Ratings reissued 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, Based on data from MarketBeat.com, the stock presently has an average rating of “Sell”.

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.