Should investors be concerned about ASH's EPS volatility?

**Investors should be mindful of ASH's EPS volatility**, as it indicates potential risks and uncertainties in the company's financial performance. Here's an analysis to support this concern:

1. **Recent Negative EPS Performance**: The most recent EPS for Ashland Global Holdings Inc. (ASH) was -$3.5 for the quarter ending December 31, 2024. This negative EPS, coupled with a decline of 13.63% over the past 52 weeks, suggests a challenging period for the company.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|ASH|ASH.N|Ashland|2024 Q2|43.11377245508983|2.39|169|
|ASH|ASH.N|Ashland|2024 Q3|-87.2340425531915|0.12|169|
|ASH|ASH.N|Ashland|2025 Q1|-786.2745098039215|-3.5|169|

2. **Analyst Expectations and Performance**: Analysts have high expectations with an anticipated EPS of $1.40 for the upcoming quarter. However, the current EPS is significantly lower, indicating a potential mismatch between expectations and reality.
3. **Historical Performance Variance**: Ashland's EPS has shown variability, with a significant decline of 9.74% following the Q2 2023 earnings report. This historical volatility suggests that the company's financial performance is subject to considerable fluctuations.
4. **Market Sentiment and Implied Volatility**: The options market shows high implied volatility for Ashland's stock, indicating that investors are expecting significant movements in the stock price. This sentiment could be a reflection of underlying concerns about the company's financial stability and growth prospects.
5. **Institutional Confidence**: Despite the EPS volatility, institutional investors show confidence with approximately 87.95% of Ashland’s stock owned by institutional investors. This indicates that some investors believe in the company's potential for recovery or growth.

In conclusion, while there are signs of concern regarding Ashland's EPS volatility, it is not without hope. The significant institutional ownership and the company's strategic moves, such as the stock repurchase program, suggest that some investors remain confident in Ashland's long-term prospects. However, prudent investors should closely monitor the company's financial performance and market conditions.