Ashland (ASH) Up 14.9% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Ashland (ASH). Shares have added about 14.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Ashland due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Ashland’s Q4 Earnings Miss Estimates on Portfolio Actions, Revenues Down

Ashland recorded a profit of $32 million or 71 cents per share for the fourth-quarter fiscal 2025 (ended Sept. 30, 2025) compared with a profit of $16 million or 33 cents in the prior-year quarter.  

Barring one-time items, adjusted earnings were $1.08 per share, down from the year-ago quarter figure of $1.26. The bottom line missed the Zacks Consensus Estimate of $1.17.  

Sales were down 8% year over year to $478 million. The top line beat the Zacks Consensus Estimate of $474 million. Sales for the fiscal fourth quarter were adversely impacted by the portfolio optimization actions involving curtailing or divesting certain lower-margin products, lower volumes in Specialty Additives and reduced pricing.  

Segment Highlights

Life Sciences: Sales in the segment were down 10% year over year to $173 million in the reported quarter. The Zacks Consensus Estimate for the same was $172 million. The decline was primarily caused by the portfolio optimization.  

Personal Care: Sales in the division declined 7% year over year to $151 million. The metric surpassed the Zacks Consensus Estimate of $148 million. The decrease was primarily due to portfolio optimization, mainly attributed to the divestiture of the Avoca business line.  

Specialty Additives: Sales in the segment fell 9% year over year to $131 million but beat the Zacks Consensus Estimate of $129 million. The decline was primarily due to the portfolio actions, including the divestment of the low-margin construction business.  

Intermediates: Sales in the segment went down 8% year over year to $33 million. The figure also missed the consensus estimate of $34 million. Overall sales decreased, mostly due to lower prices and reduced merchant volumes.  

Financials

Cash and cash equivalents were $215 million at the end of the quarter, up around 3.9% sequentially. Long-term debt was $1,384 million, up roughly 2.6% over the prior quarter. 

Outlook

For fiscal 2026, Ashland expects sales to be in the range of $1.835-$1.905 billion and adjusted EBITDA to be $400-$430 million.  

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

The consensus estimate has shifted -16.65% due to these changes.

VGM Scores

At this time, Ashland has a average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Ashland has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Ashland belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Sherwin-Williams (SHW), has gained 1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Sherwin-Williams reported revenues of $6.36 billion in the last reported quarter, representing a year-over-year change of +3.2%. EPS of $3.59 for the same period compares with $3.37 a year ago.

For the current quarter, Sherwin-Williams is expected to post earnings of $2.17 per share, indicating a change of +3.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Sherwin-Williams. Also, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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