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Investing.com -- Oil-Dri Corporation of America (NYSE:ODC) reported third quarter earnings that surpassed last year’s results, sending shares up 2.2% in trading.
The sorbent mineral products maker posted adjusted earnings per share of $0.80 for the third quarter, up 51% from $0.53 in the same period last year. Revenue rose 8% YoY to $115.5 million, marking the company’s 16th consecutive quarter of year-over-year sales growth.
Oil-Dri’s strong performance was driven by its diverse product portfolio, with significant demand for agricultural and renewable diesel products offsetting headwinds in clay-based cat litter. The recently acquired crystal cat litter business also contributed to growth.
"The strength of our diverse product portfolio helped us achieve our highest third quarter net sales, gross profit and net income on record," said Daniel S. Jaffee, President and CEO of Oil-Dri.
Gross margins expanded to 28.6% from 28.2% in the prior year quarter, marking the 11th straight quarter of YoY margin improvement. Operating income jumped 33% to $13.9 million.
The Business to Business segment saw an 18% revenue increase to $42.7 million, while Retail and Wholesale revenue grew 3% to $72.8 million.
Oil-Dri ended the quarter with $36.5 million in cash and cash equivalents, up from $23.5 million at the end of fiscal 2024, driven by higher net income.
Looking ahead, Jaffee said the company will "continue to prioritize strategic growth and execution with unwavering dedication to our loyal customers" as it enters the fourth quarter.
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