Innophos Holdings shares were 13% higher Tuesday after the maker of nutritional specialty ingredients reported Q2 adjusted earnings fell to $0.57 per share from $0.63 a year ago. The result exceeded the $0.53 estimate from analysts polled by Capital IQ. Revenue edged down to $179.1 million from $181.9 million but beat the $172.7 million estimate.
For Q3, Innophos said it expects Q3 sales to be similar to Q2 but down approximately 4% from a year ago. Analysts are expecting Q3 sales of $186.3 million. Earnings in the quarter are are forecast to be positively affected sequentially by reduced implementation fees and first-time cost savings. For the FY, the company still expects earnings to be broadly in line with 2016 and sales to be down about 4%. Separately, Innophos said it has agreed to acquire Novel Ingredients, a provider of dietary supplement ingredient solutions, for $125 million. The deal is expected to be accretive to EPS in the first year after the deal closes. Novel Ingredients has annual revenue of nearly $100 million.