What caused ASH's EPS surprises in 2024?

The EPS of Ashland Global Holdings Inc. (ASH) experienced a surprise of -0.02 in 2024, which can be attributed to several key factors: 1. **Revenue Shortfall**: Although Ashland surpassed EPS expectations in Q2 2024 with a reported EPS of $1.27, revenue fell slightly below analyst estimates, coming in at $575 million compared to the projected $574.64 million. This minor shortfall might have contributed to the overall EPS surprise. However, in Q4 2024, the company missed its revenue forecast, with actual revenues of $405 million compared to the estimated $431.72 million. This significant revenue decline likely had a more substantial impact on the EPS surprise. |code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code| |---|---|---|---|---|---|---| |ASH|ASH.N|Ashland|2024 Q1|0.26|0.51|169| |ASH|ASH.N|Ashland|2024 Q2|0.1|2.39|169| |ASH|ASH.N|Ashland|2024 Q3|0.04|0.12|169| |ASH|ASH.N|Ashland|2024 Q4|-0.02||169| 2. **Market Challenges and Production Volume Issues**: In Q1 2024, Ashland faced challenges due to market-demand dynamics and lower production volumes, which led to a 35% drop in adjusted EBITDA to $70 million. These issues might have influenced the company's financial performance and contributed to the EPS surprise. Additionally, in Q2 2024, sales declined by 5% year-over-year, primarily due to softer pricing and unfavorable volume in Life Sciences. This decline could have affected the company's profitability and, consequently, its EPS. 3. **Strategic Initiatives**: Ashland has been actively pursuing portfolio optimization and divestiture strategies, which have impacted its financial results. For example, the strategic divestiture of its nutraceuticals business and other non-core activities has reduced sales but contributed to a more focused and profitable product lineup. Such initiatives can lead to short-term fluctuations in EPS due to the restructuring process. 4. **Foreign Currency Impact**: Foreign currency has been a factor in Ashland's sales performance. While it favorably impacted sales by approximately 1% in some quarters, it may not have been enough to fully offset other challenges affecting revenue. In summary, Ashland's EPS surprise in 2024 was likely a result of a combination of factors including revenue shortfall, market challenges, strategic initiatives, and foreign currency impact.