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Key Predictions for Earnings Reports of APD, EMN & PX
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A few major chemical companies are scheduled to report their quarterly numbers on Oct 26. The chemical industry is back on track after bearing the brunt of the global economic crisis. Chemical companies continue to shift their focus on attractive, growth markets. Moreover, they remain actively focused on mergers and acquisitions to diversify and perk up growth.
Despite a few lingering challenges, chemical companies are expected to continue the earnings momentum witnessed in the second quarter. This is because the fundamental driving factors remained firmly in place.
Strategic measures including productivity improvement, pricing actions, portfolio restructuring and earnings-accretive acquisitions are expected to drive the performance of chemical makers in the third quarter. Cost-cutting measures and productivity improvement actions by chemical companies should continue to yield industry-wide margin improvements. Synergies from acquisitions should lend support to earnings.
Per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. Overall third-quarter earnings for the sector are projected to decline 9.3% while revenues are expected to increase 9.1%, per the latest Earnings Preview.
We take a sneak peek at three chemical companies that are gearing up to report their quarterly results this Thursday.
Air Products & Chemicals, Inc. (APD - Free Report) will report fiscal fourth-quarter earnings 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 stand at $1.69. While the stock carries a Zacks Rank #1 (Strong Buy), its 0.00% ESP makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Air Products surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missed in one, resulting in an average positive surprise of around 1.8%.
The Zacks Consensus Estimate for revenues for Air Products for the to-be-reported quarter stands at $2,094 million, reflecting a decline of 15% from the year-ago quarter.
Revenues for Air Products’ Industrial Gases — America segment for the fiscal fourth quarter is projected to witness a 6.2% year-over-year rise as the Zacks Consensus Estimate is pegged at $931 million. Moreover, Air Products’ Industrial Gases — Asia segment’s revenues are expected to increase 11% year over year as the Zacks Consensus Estimate stands at $498 million.
The Zacks Consensus Estimate for revenues for the Industrial Gases — EMEA segment is pegged at $451 million, reflecting a 9% rise year over year. The same for the Industrial Gases — Global segment stands at $191 million, representing year-over-year growth of 21.7%.
Air Products is well placed to leverage the cyclical recovery in the core industrial end-markets. It also remains on track with its $600 million cost-reduction programs, which should support margins. Acquisitions and new business wins are also expected to continue to drive results. (Read more: What's in the Cards for Air Products in Q4 Earnings?)
Air Products and Chemicals, Inc. Price and EPS Surprise
Eastman Chemical Company (EMN - Free Report) will report third-quarter results after the close. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $2.03. The company carries a Zacks Rank #4 (Sell). We caution against Sell-rated (Zacks Rank #4 or 5) stocks going into the earnings announcement.
Eastman Chemical topped the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 5.8%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $2,387 million, reflecting a rise of 4.4% from the year-ago quarter.
While Eastman Chemical faces challenges in fibers and ethylene pricing and headwinds from a spike in raw materials costs, it should gain from synergies of acquisitions, cost-cutting actions and growth of its high margins specialty products. (Read more: Can Eastman Chemical Sustain Earnings Streak in Q3?)
Praxair Inc. (PX - Free Report) will report third-quarter results before the bell. The stock has an Earnings ESP -1.34% as the Most Accurate estimate stands at $1.43 while the Zacks Consensus Estimate is pegged at $1.44. The stock carries a Zacks Rank #5 (Strong Sell).
The company posted better-than-expected results in each of the last four quarters. The average earnings surprise was a positive 1.5%.
The Zacks Consensus Estimate for revenues stands at $2,867 million, reflecting a rise of 5.6% from the year-ago quarter.
Praxair expects customer demand in the United States to be below expectations in the second half of 2017 while economic conditions in South America will continue to suffer from political tensions. Adding to the concerns is the adverse impact of the hurricanes in the United States on demand of Praxair’s industrial gases. Also, the company faces headwinds from unfavorable currency swings and rise in production costs. (Read more: Will Regional Uncertainties Hurt Praxair's Q3 Earnings?)
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
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Key Predictions for Earnings Reports of APD, EMN & PX
A few major chemical companies are scheduled to report their quarterly numbers on Oct 26. The chemical industry is back on track after bearing the brunt of the global economic crisis. Chemical companies continue to shift their focus on attractive, growth markets. Moreover, they remain actively focused on mergers and acquisitions to diversify and perk up growth.
Despite a few lingering challenges, chemical companies are expected to continue the earnings momentum witnessed in the second quarter. This is because the fundamental driving factors remained firmly in place.
Strategic measures including productivity improvement, pricing actions, portfolio restructuring and earnings-accretive acquisitions are expected to drive the performance of chemical makers in the third quarter. Cost-cutting measures and productivity improvement actions by chemical companies should continue to yield industry-wide margin improvements. Synergies from acquisitions should lend support to earnings.
Per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. Overall third-quarter earnings for the sector are projected to decline 9.3% while revenues are expected to increase 9.1%, per the latest Earnings Preview.
We take a sneak peek at three chemical companies that are gearing up to report their quarterly results this Thursday.
Air Products & Chemicals, Inc. (APD - Free Report) will report fiscal fourth-quarter earnings 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 stand at $1.69. While the stock carries a Zacks Rank #1 (Strong Buy), its 0.00% ESP makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Air Products surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missed in one, resulting in an average positive surprise of around 1.8%.
The Zacks Consensus Estimate for revenues for Air Products for the to-be-reported quarter stands at $2,094 million, reflecting a decline of 15% from the year-ago quarter.
Revenues for Air Products’ Industrial Gases — America segment for the fiscal fourth quarter is projected to witness a 6.2% year-over-year rise as the Zacks Consensus Estimate is pegged at $931 million. Moreover, Air Products’ Industrial Gases — Asia segment’s revenues are expected to increase 11% year over year as the Zacks Consensus Estimate stands at $498 million.
The Zacks Consensus Estimate for revenues for the Industrial Gases — EMEA segment is pegged at $451 million, reflecting a 9% rise year over year. The same for the Industrial Gases — Global segment stands at $191 million, representing year-over-year growth of 21.7%.
Air Products is well placed to leverage the cyclical recovery in the core industrial end-markets. It also remains on track with its $600 million cost-reduction programs, which should support margins. Acquisitions and new business wins are also expected to continue to drive results. (Read more: What's in the Cards for Air Products in Q4 Earnings?)
Air Products and Chemicals, Inc. Price and EPS Surprise
Air Products and Chemicals, Inc. Price and EPS Surprise | Air Products and Chemicals, Inc. Quote
Eastman Chemical Company (EMN - Free Report) will report third-quarter results after the close. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $2.03. The company carries a Zacks Rank #4 (Sell). We caution against Sell-rated (Zacks Rank #4 or 5) stocks going into the earnings announcement.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Eastman Chemical topped the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 5.8%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $2,387 million, reflecting a rise of 4.4% from the year-ago quarter.
While Eastman Chemical faces challenges in fibers and ethylene pricing and headwinds from a spike in raw materials costs, it should gain from synergies of acquisitions, cost-cutting actions and growth of its high margins specialty products. (Read more: Can Eastman Chemical Sustain Earnings Streak in Q3?)
Eastman Chemical Company Price and EPS Surprise
Eastman Chemical Company Price and EPS Surprise | Eastman Chemical Company Quote
Praxair Inc. (PX - Free Report) will report third-quarter results before the bell. The stock has an Earnings ESP -1.34% as the Most Accurate estimate stands at $1.43 while the Zacks Consensus Estimate is pegged at $1.44. The stock carries a Zacks Rank #5 (Strong Sell).
The company posted better-than-expected results in each of the last four quarters. The average earnings surprise was a positive 1.5%.
The Zacks Consensus Estimate for revenues stands at $2,867 million, reflecting a rise of 5.6% from the year-ago quarter.
Praxair expects customer demand in the United States to be below expectations in the second half of 2017 while economic conditions in South America will continue to suffer from political tensions. Adding to the concerns is the adverse impact of the hurricanes in the United States on demand of Praxair’s industrial gases. Also, the company faces headwinds from unfavorable currency swings and rise in production costs. (Read more: Will Regional Uncertainties Hurt Praxair's Q3 Earnings?)
Praxair, Inc. Price and EPS Surprise
Praxair, Inc. Price and EPS Surprise | Praxair, Inc. Quote
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>