Ascent Industries (NASDAQ:ACNT) Posts Earnings Results

Ascent Industries (NASDAQ:ACNT) released its quarterly earnings results on Tuesday. The company reported $0.07 EPS for the quarter, Zacks reports. The company had revenue of $25.67 million during the quarter. Ascent Industries had a negative return on equity of 4.37% and a net margin of 1.54%.

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 Down 1.0%

NASDAQ ACNT opened at $15.38 on Wednesday. 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 company has a fifty day moving average of $14.57 and a two-hundred day moving average of $14.74. The firm has a market capitalization of $139.04 million, a price-to-earnings ratio of 118.32 and a beta of 0.52. Ascent Industries has a 52 week low of $11.62 and a 52 week high of $17.92.

Wall Street Analyst Weigh In

Separately, Weiss Ratings restated a “sell (d+)” rating on shares of Ascent Industries in a research report on Friday, July 24th. One analyst has rated the stock with a Sell rating, According to MarketBeat.com, Ascent Industries currently has a consensus rating of “Sell”.

Institutional Investors Weigh In On Ascent Industries

Several hedge funds and other institutional investors have recently made changes to their positions in the company. O Shaughnessy Asset Management LLC boosted its stake in shares of Ascent Industries by 6.4% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 94,185 shares of the company’s stock worth $1,525,000 after purchasing an additional 5,654 shares during the period. Russell Investments Group Ltd. grew its holdings in Ascent Industries by 2,171.7% during the 4th quarter. Russell Investments Group Ltd. now owns 44,935 shares of the company’s stock valued at $727,000 after purchasing an additional 42,957 shares during the last quarter. Empowered Funds LLC raised its position in Ascent Industries by 6.5% in the 1st quarter. Empowered Funds LLC now owns 47,620 shares of the company’s stock worth $603,000 after purchasing an additional 2,927 shares during the period. Rothschild Wealth LLC purchased a new stake in Ascent Industries in the 4th quarter worth about $389,000. Finally, AQR Capital Management LLC lifted its stake in Ascent Industries by 67.7% in the fourth quarter. AQR Capital Management LLC now owns 23,986 shares of the company’s stock worth $388,000 after purchasing an additional 9,685 shares during the last quarter. Hedge funds and other institutional investors own 26.05% of the company’s stock.

Ascent Industries Company Profile

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.