Innospec Inc.IOSP has declared a significant investment in its Performance Chemicals business that will support rising customer demand for dried surfactants. The investment will facilitate capacity expansion at the surfactant production facility in Saint Mihiel, France.
Apart from supporting customer's growth in key growing markets, this strategic investment will focus on boosting the company's production of dried anionic surfactants - one of the core product lines in Innospec's recently acquired surfactants business. These technologies are used in a range of household detergents and hard surface cleaners. The company expects the investment to deliver beneficial production by end-2017.
Innospec's shares have rallied 32.3% in the last one year, outperforming the Zacks categorized Chemicals-Diversified industry's gain of 15.4%.
Innospec recorded adjusted earnings of $1.00 per share in the first quarter, coming ahead of the Zacks Consensus Estimate of 95 cents. The company's revenues grew 39% year over year to $294.3 million in the quarter. The company witnessed higher sales across core business segments in the reported quarter.
Innospec is well positioned to deliver strong growth in all its businesses. The company continues to fully integrate its recent acquisitions as well as pursue other strategic buyouts to boost its portfolio further.
In the first quarter, Innospec noted that demand across Performance Chemicals, Oilfield Services and Octane Additives segments improved greatly. Sales of Performance Chemicals unit jumped three-fold year over year on the back of recent acquisitions.
Innospec Inc. Price and Consensus
Zacks Rank & Other Stocks to Consider
Innospec currently carries a Zacks Rank #2 (Buy).
Some top ranked stocks in the chemical space include BASF SE BASFY , The Chemours Company CC and Kronos Worldwide, Inc. KRO , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
BASF has expected long-term growth of 8.9%.
Chemours has expected long-term growth of 15.5%.
Kronos has expected long-term growth of 5%.
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