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AdvanSix Q2 Net Jumps Three Times On 88% Sales Growth; Beats Estimates

AdvanSix (ASIX), engaged in the field of nylon solutions, chemical intermediates, and plant nutrients on Friday announced its second-quarter results that witnessed net income increase more than three times on the strength of 88 percent surge in revenues.

The results also surpassed Street's expectations on earnings as well as revenue.

Net Income for the period was $44.1 million and $1.53 per share as compared to $11.4 million and $0.41 per share in the corresponding period a year ago.

On average, 2 analysts polled by Thomson Reuters were expecting the company to report earnings of $0.89. Analysts typically exclude one-time items.

Sales increased by more than 88 percent to $437.7 million, from the level of $233 million in the year-ago quarter, driven by 32% higher volume, 31% higher raw material pass-through pricing and 25% favorable impact of market-based pricing.

On average, 2 analysts polled by Thomson Reuters were expecting the company to report revenues of $408.55 million for the period.

EBITDA of $76.0 million represented an increase of $45.2 million versus the prior year, whereas EBITDA Margin of 17.4 percent represented an increase of 420 bps versus the prior year.

"Our record performance is attributable to strong volume and pricing improvement including continued growth in differentiated products amid favorable end market conditions and tight industry supply." said Erin Kane, president and CEO of AdvanSix.

For full-year 2021, the company expects Capital Expenditures to be between $65 and $70 million compared to prior expectations of $70 to $80 million, reflecting timing of project execution.

The company expects pre-tax income impact of $24 to $27 million in 2021, compared to prior expectations of $25 to $30 million citing efficiencies in planned plant turnaround programs.

ASIX is currently trading in premarket at $33.70, up $0.95 or 2.90 percent from previous close.

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