Seaport Res Ptn Has Weak Estimate for Stepan FY2024 Earnings

Stepan (NYSE:SCL) – Research analysts at Seaport Res Ptn decreased their FY2024 EPS estimates for shares of Stepan in a research note issued on Wednesday, January 22nd. Seaport Res Ptn analyst M. Harrison now expects that the basic materials company will post earnings per share of $2.39 for the year, down from their previous forecast of $2.60. The consensus estimate for Stepan’s current full-year earnings is $2.53 per share. Seaport Res Ptn also issued estimates for Stepan’s Q4 2024 earnings at $0.31 EPS, Q1 2025 earnings at $0.92 EPS, Q3 2025 earnings at $0.98 EPS, Q4 2025 earnings at $0.60 EPS, FY2025 earnings at $3.54 EPS and FY2026 earnings at $4.79 EPS.

Stepan (NYSE:SCL) last issued its earnings results on Wednesday, October 30th. The basic materials company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.38. Stepan had a net margin of 2.10% and a return on equity of 4.56%. The business had revenue of $546.84 million for the quarter, compared to analyst estimates of $577.23 million. During the same period in the prior year, the firm earned $0.64 earnings per share. Stepan’s revenue was down 2.7% on a year-over-year basis.

Separately, StockNews.com lowered Stepan from a “buy” rating to a “hold” rating in a report on Tuesday, January 14th.

Stepan Stock Performance

Shares of SCL opened at $62.79 on Friday. The stock has a 50-day moving average of $69.18 and a 200-day moving average of $74.69. Stepan has a one year low of $59.70 and a one year high of $94.76. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.27 and a quick ratio of 0.86. The company has a market cap of $1.41 billion, a PE ratio of 31.24 and a beta of 0.84.

Stepan Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, December 13th. Stockholders of record on Friday, November 29th were issued a $0.385 dividend. The ex-dividend date of this dividend was Friday, November 29th. This represents a $1.54 annualized dividend and a dividend yield of 2.45%. This is an increase from Stepan’s previous quarterly dividend of $0.38. Stepan’s dividend payout ratio is currently 76.62%.

Hedge Funds Weigh In On Stepan

A number of hedge funds and other institutional investors have recently modified their holdings of SCL. Versant Capital Management Inc grew its stake in Stepan by 110.6% in the 4th quarter. Versant Capital Management Inc now owns 457 shares of the basic materials company’s stock valued at $30,000 after purchasing an additional 240 shares during the period. Copeland Capital Management LLC bought a new position in Stepan during the third quarter valued at about $48,000. KBC Group NV raised its position in Stepan by 43.9% in the third quarter. KBC Group NV now owns 934 shares of the basic materials company’s stock worth $72,000 after acquiring an additional 285 shares during the period. Strategic Investment Solutions Inc. IL bought a new stake in Stepan in the second quarter worth about $129,000. Finally, Point72 Asia Singapore Pte. Ltd. purchased a new position in Stepan in the third quarter valued at about $161,000. Hedge funds and other institutional investors own 82.70% of the company’s stock.

Stepan Company Profile

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products worldwide. It operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used in consumer and industrial cleaning and disinfection products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, and lubricating ingredients.