Stepan (NYSE:SCL) Shares Gap Down After Earnings Miss

Stepan Company (NYSE:SCL)’s stock price gapped down before the market opened on Monday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $67.23, but opened at $60.98. Stepan shares last traded at $55.9680, with a volume of 36,093 shares.

The basic materials company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of $0.35 by ($0.37). Stepan had a net margin of 1.96% and a return on equity of 3.70%. The firm had revenue of $553.89 million for the quarter, compared to analysts’ expectations of $570.60 million. During the same quarter in the previous year, the firm posted $0.12 EPS. The firm’s revenue for the quarter was up 5.4% compared to the same quarter last year.

Stepan Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Monday, March 2nd will be given a dividend of $0.395 per share. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $1.58 dividend on an annualized basis and a yield of 3.0%. Stepan’s dividend payout ratio (DPR) is currently 79.80%.

Trending Headlines about Stepan

Here are the key news stories impacting Stepan this week:

• Positive Sentiment: Board approved “Project Catalyst” targeting roughly $100 million in pre-tax savings over two years to improve margins and cash flow; management says the plan supports longer‑term profitability. Stepan Company Announces $100 Million Pre-Tax Cost Out and Efficiency Plan
• Positive Sentiment: The board declared a quarterly cash dividend of $0.395 per share (ex-dividend March 2), supporting income investors and partially offsetting sentiment pressure from the quarter. Stepan Declares Quarterly Dividend
• Positive Sentiment: Reported net income of $5.0M for Q4, up 49% year-over-year, indicating pockets of operational improvement despite the headline miss. Stepan Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Management expects EBITDA growth in 2026 as restructuring and Project Catalyst actions take effect — this is constructive long term but timing and execution risk remain. Stepan outlines $100M cost savings plan and expects EBITDA growth in 2026 amid restructuring
• Neutral Sentiment: Revenue rose ~5.4% year-over-year, showing demand resilience in parts of the business, but growth was below analyst expectations. Stepan Reports Fourth Quarter and Full Year 2025 Results
• Negative Sentiment: Q4 EPS missed badly — reported a loss of $0.02 vs. consensus $0.35 — a major driver of the selloff as it signals margin pressure and near-term earnings disruption. Stepan Co. (SCL) Reports Q4 Loss, Misses Revenue Estimates
• Negative Sentiment: Revenue missed Wall Street estimates ($553.9M vs. ~$570.6M expected), increasing near-term uncertainty and prompting investor concern about demand/mix and margin headwinds. Stepan Co. (SCL) Reports Q4 Loss, Misses Revenue Estimates

Wall Street Analyst Weigh In

Separately, Weiss Ratings raised shares of Stepan from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, February 18th. Two investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock presently has a consensus rating of “Hold”.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Deprince Race & Zollo Inc. grew its position in shares of Stepan by 29.5% during the 4th quarter. Deprince Race & Zollo Inc. now owns 900,377 shares of the basic materials company’s stock valued at $42,642,000 after acquiring an additional 205,157 shares during the period. Goldman Sachs Group Inc. boosted its position in Stepan by 195.5% during the fourth quarter. Goldman Sachs Group Inc. now owns 299,970 shares of the basic materials company’s stock worth $14,207,000 after purchasing an additional 198,457 shares in the last quarter. Invenomic Capital Management LP acquired a new stake in Stepan in the third quarter valued at approximately $8,620,000. Algert Global LLC increased its position in shares of Stepan by 209.1% in the third quarter. Algert Global LLC now owns 160,874 shares of the basic materials company’s stock valued at $7,674,000 after buying an additional 108,826 shares in the last quarter. Finally, Bridgeway Capital Management LLC acquired a new position in shares of Stepan during the 2nd quarter worth approximately $5,573,000. Institutional investors and hedge funds own 82.70% of the company’s stock.

Stepan Stock Down 20.5%

The business has a 50-day moving average price of $54.82 and a 200-day moving average price of $49.74. The stock has a market cap of $1.21 billion, a PE ratio of 27.00 and a beta of 1.05. The company has a current ratio of 1.30, a quick ratio of 0.84 and a debt-to-equity ratio of 0.29.

Stepan Company Profile

Stepan Company is a global manufacturer of specialty and intermediate chemicals, primarily known for its development and production of surfactants and related specialty products. The company’s portfolio includes a wide range of ingredients used to enhance the performance of consumer and industrial formulations, such as emulsifiers, foam control agents, odor control agents, antimicrobial products and performance additives. These products are integral components in cleaning solutions, personal care items, agrochemical formulations, coatings, oilfield treatments and polymer systems.

Serving a diverse set of end-markets, Stepan’s offerings address both consumer-facing and industrial applications.