Ingevity(NGVT) ZACKS·2024-12-12 13:50Core Viewpoint - Ingevity Corporation's stock is currently viewed as a promising investment opportunity, having increased approximately 40% over the past three months, driven by strategic repositioning, acquisitions, and growth initiatives [1] Earnings Estimates - Earnings estimates for Ingevity for 2024 have risen over the past 60 days, with the Zacks Consensus Estimate for the current year increasing by 15.9% [3] - Ingevity has outperformed the Zacks Consensus Estimate in three of the last four quarters, achieving an average earnings surprise of about 95.4% [4] Financial Performance - Ingevity's Return on Equity (ROE) for the trailing 12 months stands at 24.5%, significantly higher than the industry average of 16.1% [5] Strategic Actions - The company is undertaking several initiatives to expand capacity and drive long-term growth, including organic investments and maximizing product value [6] - The repositioning of the Performance Chemicals segment aims to reduce exposure to lower-margin markets, with plans to consolidate operations and close the Crossett facility, expected to yield annual savings of 25 million starting in 2025 [7] Operational Improvements - Ingevity has begun to see benefits from its strategic repositioning, focusing on operational improvements that lead to lower input costs and enhanced manufacturing efficiency [8] Acquisitions - The acquisition of the Capa caprolactone business has provided Ingevity with a new technology platform for revenue and earnings growth, and the expansion of its distribution network in Europe is expected to enhance market presence [9]