Ashland (NYSE:ASH) -1.5% post-market Wednesday after announcing a new $1B stock buyback authorization, replacing its previous $500M program, but also lowering full-year revenues guidance.
For FY 2023, Ashland (ASH) now forecasts revenues of ~$2.2B, compared with prior guidance of $2.3B-$2.4B and below $2.38B analyst consensus estimate, and adjusted EBITDA of ~$500M, pointing to “continued customer de-stocking, significant macroeconomic uncertainty and very limited visibility into global consumer demand.”
For Q3, Ashland (ASH) sees Q3 revenues of $545M-$550M, down ~15% from the year-earlier quarter and well below $626.2M analyst consensus, and adjusted EBITDA of $130M-$135M, with each segment expected to report Y/Y sales declines due to lower volumes from rapid customer de-stocking and partially offset by favorable pricing.
“There is still significant uncertainty as to when the de-stocking dynamics will end,” Ashland (ASH) Chair and CEO Guillermo Novo said. “Until the de-stocking is behind us, it will remain difficult for us to gauge the true end-market demand.”
More on Ashland: