Overview

* Innospec ( IOSP ) Q2 rev rises 1% to $439.7 mln, beating analyst expectations

* Adjusted EPS for Q2 just misses analyst estimates at $1.26, per LSEG data

* Co repurchased $8.2 mln in shares, maintaining a debt-free balance sheet

Outlook

* Innospec ( IOSP ) expects no Latin America activity resumption this year

* Companyexpects sequentialgross margin improvement in Performance Chemicals in the coming quarters

* Innospec ( IOSP ) sees continued strong results in Fuel Specialties

* Company aims for sequential operating income growth in Oilfield Services

Result Drivers

* FUEL SPECIALTIES - Strong growth in operating income despite revenue decline, driven by improved price/mix and positive currency impact

* PERFORMANCE CHEMICALS - Revenue growth driven by lower margin products, leading to decreased gross margins and operating income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $439.70 $439.10

mln mln (3

Analysts

)

Q2 Miss $1.26 $1.27 (3

Adjusted Analysts

EPS )

Q2 EPS $0.94

Q2 Net $23.50

Income mln

Q2 Gross $123.20

Profit mln

Q2 $34.30

Operatin mln

g Income

Q2 $31.90

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the specialty chemicals peer group is "buy"

* Wall Street's median 12-month price target for Innospec Inc ( IOSP ) is $115.00, about 31% above its August 4 closing price of $79.35

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)