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SCHAUMBURG, Ill. - Ascent Industries Co. (NASDAQ:ACNT) reported fourth quarter earnings that fell short of analyst expectations, while revenue also missed estimates. Despite the miss, the company’s shares rose 1.9% following the release.
The specialty chemicals and industrial tubular products manufacturer posted adjusted earnings per share of $0.01 for the fourth quarter, $0.02 below the analyst consensus of $0.03. Revenue came in at $40.7 million, missing the $46.4 million estimate and declining 1.3% YoY from $41.2 million.
Despite the revenue miss, Ascent saw significant improvement in profitability metrics. Gross profit surged 438% to $7.3 million, with gross margin expanding to 17.9% compared to -5.2% in the year-ago quarter. Adjusted EBITDA swung to a positive $2.6 million from a loss of $5.9 million last year.
"We closed out the year generating strong earnings growth and our fourth consecutive quarter of adjusted EBITDA margin expansion, primarily driven by the strategic self-improvement initiatives we implemented at the beginning of the year," said Ascent CEO Bryan Kitchen.
For the full year 2024, Ascent reported net sales of $177.9 million, down 7.9% from $193.2 million in 2023. The company posted a net loss of $11.2 million or $1.11 per diluted share, compared to a loss of $34.2 million or $3.37 per share the previous year.
Ascent ended the year with $16.1 million in cash and no debt outstanding under its revolving credit facilities. The company’s modest 1.9% stock price increase suggests investors are cautiously optimistic about the improved profitability despite top-line weakness.
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