Nexeo Solutions Inc (NASDAQ: NXEO) has posted better than expected results for the third quarter of FY 18. NXEO in the third quarter of FY 18 has reported the adjusted earnings per share of 31 cents, beating the analysts’ estimates for the adjusted earnings per share of 19 cents. The company had reported the adjusted revenue growth of 11 percent to $1.05 billion in the third quarter of FY 18, beating the analysts’ estimates for revenue of $994.50 million. The increase in revenues was primarily due to an increase in average selling prices of 10.2% across all segments in all regions largely due to an inflationary pricing environment and a shift in portfolio mix to products with higher average selling prices. Approximately $14.4 million of the increase was a result of strengthening exchange rates of various currencies versus the USD as compared to the same period in the prior fiscal year.
The stock rose 0.010% on 11th September 2018. The company has recently launched its newly enhanced website at its current www.NexeoSolutions.com address. The new website has put the customer experience at the forefront, has provided the visitors a comprehensive understanding of the Company’s value proposition, overall service offerings, and easy access to product information. The Company reported net income of $17.5 million and $10.2 million for the three months ended June 30, 2018 and June 30, 2017, respectively. Adjusted EBITDA was $57.6 million and $52.4 million for the three months ended June 30, 2018 and June 30, 2017, respectively
Moreover, the company has posted the gross profit of $120.2 million and $102.7 million for the three months ended June 30, 2018 and June 30, 2017, respectively. Gross profit rose primarily due to a favorable shift in product mix and continued specialty supplier growth in the Chemicals line of business. Additionally, our centralized platform allowed us to effectively manage supply chain logistics to mitigate freight cost increases and facilitate strong price execution. Approximately $1.1 million of the increase in gross profit was due to the strengthening of exchange rates of various currencies versus the USD compared to the same period in the prior fiscal year
Additionally, the revenue of Chemicals rose due to 12.9% increase in average selling prices largely as a result of an inflationary pricing environment and increased specialty mix. Plastic revenue increase was primarily attributable to a 7.1% increase in average selling prices in an inflationary pricing environment and an increase in volumes of 2.7% resulting from higher demand in North America and continued market share gain in EMEA.