Ashland said fiscal third-quarter revenue rose 7% and beat analyst expectations, while adjusted EPS also came in above consensus.
The US specialty ingredients maker said sales volumes rose 6% year-over-year, with gains across all business units. Pricing increased about 1% year-over-year, helping to recover higher raw material costs.
Life Sciences segment saw double-digit sales growth, driven by broad-based pharma demand and continued momentum in differentiated products.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q3 Revenue | Beat | $497 mln | $485.98 mln (8 analysts) |
| Q3 Adjusted EPS | Beat | $1.02 | $0.99 (10 analysts) |
| Q3 Net Income | $16 mln | ||
| Q3 EPS | $0.35 |
The current average analyst rating on the shares is "buy," with 9 "strong buy" or "buy," 3 "hold" and no "sell" or "strong sell" recommendations. The median 12-month price target is $74.00, about 8.8% above the July 28 closing price of $68.01.
The stock recently traded at 16 times next 12-month earnings, versus a P/E of 13 three months ago.
Ashland reaffirmed full-year 2026 sales guidance of $1,835 million to $1,870 million and maintained 2026 adjusted EBITDA guidance at $385 million to $400 million.
The company revised its adjusted EPS growth outlook to low-to-mid-single digit growth from mid-to-high-single digit growth, reflecting a higher tax rate associated with unfavorable discrete items.
