Back to top

Image: Bigstock

Westlake Chemical's Q2 Earnings Top Estimates, Sales Trail

Read MoreHide Full Article

Westlake Chemical (WLK - Free Report) is a vertically integrated international producer and supplier of petrochemicals, polymers and fabricated products. The company's range of products includes ethylene, polyethylene, styrene, vinyl intermediates, PVC, PVC Pipe, PVC windows, fence and decking components.

Westlake Chemical is benefiting from healthy demand for olefins and vinyls products. Moreover, the Axiall Corp. acquisition is expected to deliver meaningful annual cost synergies.

Let’s have a quick look at the company’s second-quarter 2017 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Westlake Chemical for the second quarter has been stable over the last month. The company has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters while missing once, with an average positive surprise of 24.11%.

Earnings

Westlake Chemical’s adjusted earnings came in at $1.21 per share in the quarter, which topped the Zacks Consensus Estimate of $1.19.

Revenues

Westlake Chemical reported net sales of $1,979.2 million, up around 82.2% year over year. Sales in the quarter benefited from higher sales contributed from Axiall and increased selling prices for major products. Revenues, however, trailed the Zacks Consensus Estimate of $2,083.6 million.

Key Developments to Note

Westlake Chemical’s second quarter results benefited from strong global demand of its key products and increasing prices in Vinyls segment. The company is making notable progress in integrating, improving activities and achieving the expected synergies associated with the acquisition of Axiall business.

Zacks Rank

Currently, Westlake Chemical has a Zacks Rank #2 (Buy), but that could change following its earnings report which was just released.

Market Reaction

Westlake Chemical’s shares were down about 0.5% in pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.

More Stock News: Tech Opportunity Worth $386 Billion in 2017

From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.

Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.

See these stocks now>>
 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Westlake Corp. (WLK) - free report >>

Published in