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LyondellBasell (LYB) to Post Q3 Earnings: What's in Store?

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LyondellBasell Industries N.V. (LYB - Free Report) is set to release third-quarter 2022 results on Oct 28, before the opening bell.

LyondellBasell beat the Zacks Consensus Estimate for earnings in two of the last four quarters while missing the same twice. It has a trailing four-quarter earnings surprise of roughly 1.1%, on average. The company posted an earnings surprise of around 4.4% in the last reported quarter. The company’s results in the third quarter are likely to have been impacted by weaker demand and higher energy and raw material costs.

Shares of LyondellBasell have declined 14.7% in the past year compared with an 11.8% fall of the industry.

 

Zacks Investment Research
Image Source: Zacks Investment Research


Let’s see how things are shaping up for this announcement.

 

What do the Estimates Say?

The Zacks Consensus Estimate for third-quarter consolidated sales for LyondellBasell is pegged at $13,279 million, suggesting an increase of around 4.6% year over year.

The Zacks Consensus Estimate for sales in LyondellBasell’s Olefins & Polyolefins — Americas unit is currently pegged at $3,606 million, suggesting a decline of 18.2% year over year.

The Zacks Consensus Estimate for sales in the Olefins & Polyolefins — Europe, Asia, International segment is currently pegged at $3,151 million, which calls for a decrease of 8.9% year over year.

The consensus estimate for the Advanced Polymer Solutions segment is pegged at $1,292 million, suggesting a 0.5% year-over-year rise.

The consensus mark for sales in the Intermediates and Derivatives segment is currently pegged at $3,413 million, indicating an increase of 17.9% year over year.

The Zacks Consensus Estimate for sales in the Refining segment is currently at $3,253 million, which indicates an increase of 42.2% year over year.

The consensus mark for sales in the Technology segment is currently pegged at $188 million, calling for a decline of 21% year over year.

Factors at Play in Q3

The company is likely to have benefited, in the third quarter, from strong demand for polymers in packaging in the Olefins & Polyolefins — Americas unit. Performance in the Olefins & Polyolefins — EAI unit is expected to have been impacted by softer demand. Pandemic-related lockdowns in China might have also affected results in the quarter.

Margins in the Intermediates and Derivatives segment are likely to have hurt in the third quarter on weaker demand for durable goods. The recovery in the automotive market is expected to have supported results in the Advanced Polymer Solutions segment. The Refining segment is likely to have benefited from higher demand for transportation fuels.

The company is also expected to have witnessed headwinds stemming from higher feedstock and energy costs in the September quarter. Tight supply has led to a spike in energy costs, especially in Europe. Higher associated costs are expected to have exerted pressure on margins in the third quarter.

 

LyondellBasell Industries N.V. Price and EPS Surprise

 

LyondellBasell Industries N.V. Price and EPS Surprise

LyondellBasell Industries N.V. price-eps-surprise | LyondellBasell Industries N.V. Quote

 

Zacks Model

Our proven model does not conclusively predict an earnings beat for LyondellBasell this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for LyondellBasell is -7.04%. The Zacks Consensus Estimate for third-quarter earnings is currently pegged at $2.96. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: LyondellBasell currently carries a Zacks Rank #5 (Strong Sell).

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:

Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +3.64% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Albemarle’s third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for ALB’s earnings for the quarter is pegged at $6.84.

Koppers Holdings Inc. (KOP - Free Report) , slated to release earnings on Nov 4, has an Earnings ESP of +2.28% and carries a Zacks Rank #2.

The Zacks Consensus Estimate for Koppers’ third-quarter earnings has been revised 2.6% upward in the past 60 days. The consensus estimate for KOP’s earnings for the quarter is currently pegged at $1.17.

ATI Inc. (ATI - Free Report) , scheduled to release earnings on Nov 2, has an Earnings ESP of +1.15%.

The Zacks Consensus Estimate for ATI's earnings for the third quarter is currently pegged at 52 cents. ATI currently carries a Zacks Rank #3.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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