Overview

* Innospec ( IOSP ) Q3 sales slightly beat analyst expectations, reaching $441.9 mln

* Adjusted EPS for Q3 missed analyst expectations at $1.12

* Company increased semi-annual dividend by 10% and repurchased $10.7 mln in shares

Outlook

* Innospec ( IOSP ) expects sequential operating income growth in Performance Chemicals and Oilfield Services

* Innospec ( IOSP ) does not assume resumption of Mexican sales in its outlook

Result Drivers

* FUEL SPECIALTIES - Strong operating income growth and margin expansion offset weaker results in other segments

* PERFORMANCE CHEMICALS - Sales grew but gross margins declined due to higher costs and weaker product mix

* OILFIELD SERVICES - Operating income declined due to lower Middle East activity and customer timing issues

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $441.90 $439.63

mln mln (3

Analysts

)

Q3 Miss $1.12 $1.18 (3

Adjusted Analysts

EPS )

Q3 EPS $0.52

Q3 Net $12.90

Income mln

Q3 Gross $116.70

Profit mln

Q3 $5.90

Operatin mln

g Income

Q3 $11.50

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 $107.50, about 31.5% above its November 3 closing price of $73.65

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

Press Release:

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(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.)