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Chemical Stock Earnings to Watch on Feb 6: AXTA, CBT & More
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A number of chemical companies are gearing up to report their quarterly numbers on Feb 6. The chemical industry enjoyed a positive run in 2017, helped by continued strength across major end-use markets such as construction, electronics and automotive. A recovery in demand in the energy space has been another tailwind for the chemical industry, thanks to the recent rebound in crude oil prices.
Notwithstanding a few challenges including some lingering impacts of devastating hurricanes, chemical companies are expected to continue the earnings momentum witnessed in the third quarter in the December quarter as the fundamental driving factors remain firmly in place.
Strategic measures including productivity improvement, pricing actions and portfolio restructuring are expected to continue to drive the performance of chemical makers in the fourth quarter. Cost-cutting measures by chemical companies should continue to yield industry-wide margin improvements. Synergies from acquisitions should also lend support to earnings.
As per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector, which is among those Zacks sectors that are expected to rack up the strongest gains in the fourth quarter. Earnings for the sector are projected to climb 42.8% while revenues are expected to spike 20.4%, per the latest Earnings Preview.
We take a sneak peek at four chemical companies that are scheduled to report their quarterly results on Feb 6.
Axalta Coating Systems Ltd. (AXTA - Free Report) will report fourth-quarter results before the bell. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 32 cents. The company has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missed in the other two, delivering an average negative surprise of 1.5%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $1,160 million, reflecting an increase of 12.6% from the year-ago quarter.
While the company remains exposed to headwinds from higher raw material costs, it should gain from its cost reduction actions, contributions of acquisitions and a recovery in volumes in the to-be-reported quarter.
Cabot Corporation (CBT - Free Report) , which will report fiscal first quarter results after the close, has an Earnings ESP of +3.21% as the Most Accurate estimate stands at 81 cents while the Zacks Consensus Estimate is pegged at 78 cents. It currently carries a favorable Zacks Rank #3 (Hold) which further strengthens our prediction of an earnings beat. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last four quarters, the company delivered better-than-expected results in two, while lagged in the others. The average earnings surprise was positive 4.3%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $643.5 million, reflecting an expected increase of 5.3% from the year-ago quarter.
Growth-focused investments are likely to support the company’s earnings in the to-be-reported quarter. Cabot remains focused on its growth strategy in core activities, driving application innovation with customers and generating robust cash flows through optimization and efficiency. (Read more: Is a Beat in the Cards for Cabot Corp in Q1 Earnings?)
Olin Corporation (OLN - Free Report) will report fourth-quarter results after the bell. It has an Earnings ESP of -1.59% as the Most Accurate estimate stands at 41 cents while the Zacks Consensus Estimate is pegged at 42 cents. The company currently carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, its negative ESP makes surprise prediction difficult.
In the last four quarters, the company delivered negative surprises twice, beat once and met expectations in the other. The average earnings surprise was a negative 25.2%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $1,544 million, reflecting an expected increase of 11.4% from the year-ago quarter.
The company is expected to benefit from improved pricing of caustic soda, chlorine hydrochloric acid and bleach as well as reduced ethylene costs in the fourth quarter. However, it faces headwinds from raw material cost inflation (for benzene and propylene), turnaround and outage costs and some lingering impacts of Hurricane Harvey.
Versum Materials, Inc. will report fiscal first quarter results before the bell. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 50 cents. The company has a Zacks Rank #4, which we caution against going into the earnings announcement.
In the last four quarters, the company delivered better-than-expected results twice, missed once and met expectations in the other. The average earnings surprise was a positive 8.4%.
The Zacks Consensus Estimate for revenues for the first quarter stands at $295 million, reflecting an increase of 9% from the year-ago quarter.
While the company is likely to gain from the strength of its portfolio, productivity measures and continued strong volumes across its businesses in the to-be-reported quarter, it is exposed to pricing and product mix-related headwinds.
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Chemical Stock Earnings to Watch on Feb 6: AXTA, CBT & More
A number of chemical companies are gearing up to report their quarterly numbers on Feb 6. The chemical industry enjoyed a positive run in 2017, helped by continued strength across major end-use markets such as construction, electronics and automotive. A recovery in demand in the energy space has been another tailwind for the chemical industry, thanks to the recent rebound in crude oil prices.
Notwithstanding a few challenges including some lingering impacts of devastating hurricanes, chemical companies are expected to continue the earnings momentum witnessed in the third quarter in the December quarter as the fundamental driving factors remain firmly in place.
Strategic measures including productivity improvement, pricing actions and portfolio restructuring are expected to continue to drive the performance of chemical makers in the fourth quarter. Cost-cutting measures by chemical companies should continue to yield industry-wide margin improvements. Synergies from acquisitions should also lend support to earnings.
As per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector, which is among those Zacks sectors that are expected to rack up the strongest gains in the fourth quarter. Earnings for the sector are projected to climb 42.8% while revenues are expected to spike 20.4%, per the latest Earnings Preview.
We take a sneak peek at four chemical companies that are scheduled to report their quarterly results on Feb 6.
Axalta Coating Systems Ltd. (AXTA - Free Report) will report fourth-quarter results before the bell. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 32 cents. The company has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missed in the other two, delivering an average negative surprise of 1.5%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $1,160 million, reflecting an increase of 12.6% from the year-ago quarter.
While the company remains exposed to headwinds from higher raw material costs, it should gain from its cost reduction actions, contributions of acquisitions and a recovery in volumes in the to-be-reported quarter.
Axalta Coating Systems Ltd. Price and Consensus
Axalta Coating Systems Ltd. Price and Consensus | Axalta Coating Systems Ltd. Quote
Cabot Corporation (CBT - Free Report) , which will report fiscal first quarter results after the close, has an Earnings ESP of +3.21% as the Most Accurate estimate stands at 81 cents while the Zacks Consensus Estimate is pegged at 78 cents. It currently carries a favorable Zacks Rank #3 (Hold) which further strengthens our prediction of an earnings beat. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last four quarters, the company delivered better-than-expected results in two, while lagged in the others. The average earnings surprise was positive 4.3%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $643.5 million, reflecting an expected increase of 5.3% from the year-ago quarter.
Growth-focused investments are likely to support the company’s earnings in the to-be-reported quarter. Cabot remains focused on its growth strategy in core activities, driving application innovation with customers and generating robust cash flows through optimization and efficiency. (Read more: Is a Beat in the Cards for Cabot Corp in Q1 Earnings?)
Cabot Corporation Price and Consensus
Cabot Corporation Price and Consensus | Cabot Corporation Quote
Olin Corporation (OLN - Free Report) will report fourth-quarter results after the bell. It has an Earnings ESP of -1.59% as the Most Accurate estimate stands at 41 cents while the Zacks Consensus Estimate is pegged at 42 cents. The company currently carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, its negative ESP makes surprise prediction difficult.
In the last four quarters, the company delivered negative surprises twice, beat once and met expectations in the other. The average earnings surprise was a negative 25.2%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $1,544 million, reflecting an expected increase of 11.4% from the year-ago quarter.
The company is expected to benefit from improved pricing of caustic soda, chlorine hydrochloric acid and bleach as well as reduced ethylene costs in the fourth quarter. However, it faces headwinds from raw material cost inflation (for benzene and propylene), turnaround and outage costs and some lingering impacts of Hurricane Harvey.
Olin Corporation Price and Consensus
Olin Corporation Price and Consensus | Olin Corporation Quote
Versum Materials, Inc. will report fiscal first quarter results before the bell. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 50 cents. The company has a Zacks Rank #4, which we caution against going into the earnings announcement.
In the last four quarters, the company delivered better-than-expected results twice, missed once and met expectations in the other. The average earnings surprise was a positive 8.4%.
The Zacks Consensus Estimate for revenues for the first quarter stands at $295 million, reflecting an increase of 9% from the year-ago quarter.
While the company is likely to gain from the strength of its portfolio, productivity measures and continued strong volumes across its businesses in the to-be-reported quarter, it is exposed to pricing and product mix-related headwinds.
Versum Materials Inc. Price and Consensus
Versum Materials Inc. Price and Consensus | Versum Materials Inc. Quote
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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