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Chemical Stocks Earnings on Jul 28: DOW, APD, EMN, PX, CHMT

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A few major chemical companies are scheduled to report their quarterly numbers on Jul 28. The chemical industry falls under the broader Basic Materials sector. The sector is one among the nine out of the 16 Zacks sectors that are likely to see negative earnings growth in the second quarter with an expected earnings decline of 13.9% on 7.7% lower sales, per the latest Earnings Trends report.

The chemical industry is gradually gaining strength on the back of sustained momentum in the automotive space and rebounding construction markets. Chemical makers are gaining from strategic actions including aggressive cost management and productivity actions as well as acquisitions. These companies also remain focused on increasing their reach in high-growth markets in a bid to whittle down their exposure to businesses that are grappling with depressed demand and input cost pressures.

However, the industry remains hobbled by a spate of challenges including still a weak agriculture market, currency headwinds, weak demand in the energy space, Eurozone’s tepid recovery and a sluggish Chinese economy.

Among the chemical companies that have already come up with their quarterly numbers, we have seen positive earnings surprises from prominent chemical names like DuPont (DD - Free Report) , PPG Industries (PPG - Free Report) and Celanese Corporation (CE - Free Report) .

We take a sneak peek into five chemical companies that are gearing up to report their results on Jul 28.  

The Dow Chemical Company (DOW - Free Report) will report second-quarter results ahead of the bell. Our model did not earlier conclusively show that Dow is likely to beat estimates, but the current numbers indicate that the company is expected to come up with a positive earnings surprise as it carries a favorable Zacks Rank #3 (Hold) and Earnings ESP of +2.35%. The U.S. chemical kingpin has an impressive surprise history, having surpassed the Zacks Consensus Estimate in the trailing four quarters with an average beat of 18.26%.

Dow remains committed to its portfolio management actions and operational execution amid a still difficult operating backdrop. While currency and challenges in agriculture market remain as headwinds, the company’s productivity improvement, cost control and growth actions are expected to drive earnings in the to-be-reported quarter. (Read more: Dow Chemical Q2: Another Earnings Beat in the Cards?)

DOW CHEMICAL Price and EPS Surprise

DOW CHEMICAL Price and EPS Surprise | DOW CHEMICAL Quote

Air Products and Chemicals, Inc. (APD - Free Report) will report its fiscal third-quarter numbers ahead of the bell. The company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $$1.91. The stock carries a favorable Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. Air Products outperformed the Zacks Consensus Estimate in the trailing four quarters with an average beat of 2.84%.

While currency headwind is expected to play spoilsport, the company’s aggressive cost-control measures, synergies from acquisitions, new business wins, and sustained pricing power should support its earnings in the to-be-reported quarter. (Read more: Air Products Q3 Earnings: Will the Stock Surprise?)

AIR PRODS & CHE Price and EPS Surprise

AIR PRODS & CHE Price and EPS Surprise | AIR PRODS & CHE Quote

Eastman Chemical Co. (EMN - Free Report) , which will report second-quarter earnings numbers after the bell, has an Earnings ESP of -3.51% as the Most Accurate estimate stands at $1.65 while the Zacks Consensus Estimate is pegged at $1.71. The company carries a favorable Zacks Rank #3, but its negative ESP makes surprise prediction difficult. The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters with an average beat of 6.78%.

Eastman Chemical faces a number of challenges including a sluggish global economy, lower crude oil prices and weakening currencies across Asia and Europe. While the company should gain from synergies of acquisitions, cost-cutting actions and continued momentum in its specialty businesses, persistent pricing pressure across most of its businesses and currency headwinds may dent its results in the to-be-reported quarter. (Read more: Eastman Chemical: Will Weak Prices Dent Q2 Earnings?)

EASTMAN CHEM CO Price and EPS Surprise

EASTMAN CHEM CO Price and EPS Surprise | EASTMAN CHEM CO Quote

Praxair Inc. (PX - Free Report) will report its second-quarter results before the bell. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.35. The stock carries a favorable Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. In the four trailing quarters, Praxair delivered better-than-expected results in three while posted in-line results in one.  

Praxair is expected to gain from increasing application of industrial gases, especially hydrogen in the refining industry, oxygen in healthcare, and nitrogen and carbon dioxide in oil and gas industry. However, unfavorable foreign currency movements and an uncertain global economy remain headwinds. (Read more: Praxair to Report Q2 Earnings: What's in the Cards?)

PRAXAIR INC Price and EPS Surprise

PRAXAIR INC Price and EPS Surprise | PRAXAIR INC Quote

Chemtura Corporation , which is scheduled to report second-quarter numbers after the bell, has an Earnings ESP of -2.13% as the Most Accurate estimate stands at 46 cents while the Zacks Consensus Estimate is pegged at 47 cents. The stock carries a Zacks Rank #2 (Buy), which coupled with a negative ESP makes surprise prediction difficult. The company beat the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 8.40%.  

CHEMTURA CORP Price and EPS Surprise

CHEMTURA CORP Price and EPS Surprise | CHEMTURA CORP Quote

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