Overview

* Stepan ( SCL ) Q3 revenue rose 8% yr/yr but missed analyst expectations

* Adjusted EPS for Q3 missed consensus, affected by higher tax rate and interest expense

* Adjusted EBITDA grew 6% yr/yr, driven by Specialty Products performance

Outlook

* Stepan ( SCL ) expects continued growth in Surfactant business across key strategic end markets

* Company anticipates improving Polymer demand with increased market certainty

* Stepan ( SCL ) remains optimistic about full-year adjusted EBITDA growth and positive free cash flow

Result Drivers

* SPECIALTY PRODUCTS GROWTH - Earnings growth in Specialty Products was driven by order timing differences

* SURFACTANT SALES INCREASE - Surfactant net sales rose 10% due to higher selling prices and improved product mix

* POLYMER VOLUME GROWTH - Polymer sales volume increased 8% due to growth in North American Rigid and Phthalic Anhydride

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $590.28 $593.65

mln mln (2

Analysts

)

Q3 Miss $0.48 $0.61 (2

Adjusted Analysts

EPS )

Q3 EPS $0.47

Q3 $10.94

Adjusted mln

Net

Income

Q3 Net $10.83

Income mln

Q3 $21.79

Operatin mln

g Income

Analyst Coverage

* The one available analyst rating on the shares is "hold"

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

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