Specialty chemicals company Neo Performance Materials (OTCPK:NOPMF) fell ~13% after Q3 results missed consensus.
Q3 non-GAAP EPS was -$0.04, while revenue of $146.6M (+22.3% Y/Y) misses by $11.5M.
Q3 revenue in the Magnequench segment stood at $67.4M, higher by 12.2% Y/Y. The C&O segment revenue was $52.23M, compared to $45.68M a year ago. Rare Metals achieved revenue of $31.57M, up from the year-ago $19.51M.
Operating income came in at $2.2M, lower by 82.2% Y/Y.
Adjusted EBITDA stood at $7M, down by 60.1% Y/Y.
In addition to lower margin on sales in the quarter, Neo recorded $8M of provisions for inventories in Q3, related to higher cost inventory on hand, relative to lowered selling prices, the company said.