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Chemical Stocks' Q3 Earnings on Nov 2: FMC, IOSP, NGVT, FOE

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A few chemical companies are gearing up to report their quarterly numbers on Nov 2. The chemical industry falls under the broader Basic Materials sector. Based on the earnings scorecard as of Oct 28, 60% of the sector participants on the S&P 500 index have already reported their quarterly numbers. Earnings for these companies have increased 25.7% from the same period last year while revenues are down 0.5%, per the latest Earnings Preview. Overall earnings for the Basic Materials sector are now projected to rise 2.2% on 3.2% lower revenues.

The chemical industry is gradually gaining strength on the back of sustained momentum in the automotive space and rebounding construction markets. Chemical companies are looking for cost synergy and enhanced operational scale through consolidations amid nagging macroeconomic challenges. These companies also remain actively focused on increasing their reach in high-growth markets in a bid to cut their exposure to businesses that are grappling with depressed demand and input cost pressures.

However, the industry remains hobbled by a number of headwinds including a still weak agriculture market, currency headwinds, weak demand in the energy space and a sluggish Chinese economy.

Let’s take a peek at four chemical companies that are slated to report their third-quarter results on Nov 2.

FMC Corp. (FMC - Free Report) will report after the bell. It has an Earnings ESP of +1.72% as the Most Accurate estimate stands at 59 cents and the Zacks Consensus Estimate is pegged at 58 cents. However, the company carries a Zacks Rank #4 (Sell), which we caution against ahead of the earnings release.

The company surpassed the Zacks Consensus Estimate in all the four trailing quarters, with an average positive surprise of 11.82%. FMC Corp. is gaining from strategic investments, the Cheminova A/S acquisition and product launches. In its lithium business, the company is seeing strong demand across specialty end markets. However, FMC Corp. remains exposed to weak agriculture market conditions and currency headwinds. (Read more: FMC Corp Q3 Earnings: What's in Store for the Stock?)

FMC CORP Price and EPS Surprise

 

FMC CORP Price and EPS Surprise | FMC CORP Quote

Innospec Inc. (IOSP - Free Report) will report after the close. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 80 cents. This makes surprise prediction difficult even though the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Innospec surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 15.15%.

INNOSPEC INC Price and EPS Surprise

 

INNOSPEC INC Price and EPS Surprise | INNOSPEC INC Quote

Ingevity Corporation (NGVT - Free Report) will report after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 34.69%. This time too the company is expected to come up with a positive earnings surprise as it carries a favorable Zacks Rank #3 and an Earnings ESP of +3.28%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

INGEVITY CORP Price and EPS Surprise

 

INGEVITY CORP Price and EPS Surprise | INGEVITY CORP Quote

Ferro Corporation is slated to report after the close. It has an Earnings ESP of +3.70% as the Most Accurate estimate stands at 28 cents and the Zacks Consensus Estimate is pegged at 27 cents. However, the company carries a Zacks Rank #4. The company beat the Zacks Consensus Estimate in all the last four quarters, with an average positive surprise of 12.89%. 

FERRO CORP Price and EPS Surprise

 

FERRO CORP Price and EPS Surprise | FERRO CORP Quote

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