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Huntsman's (HUN) Earnings and Revenues Beat Estimates in Q4

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Huntsman Corporation (HUN - Free Report) reported net income (attributable to shareholders) of $246 million or $1 per share in fourth-quarter 2017, up from $128 million or 53 cents recorded a year ago.

Barring one-time items, adjusted earnings were 76 cents per share for the quarter, which topped the Zacks Consensus Estimate of 66 cents.

Huntsman reported revenues of $2,203 million, up around 15.7% year over year. The figure also beat the Zacks Consensus Estimate of $2,097 million.

Full-Year 2017 Results

For 2017, Huntsman reported adjusted income of $2.48 per share compared with $1.47 in 2016.

Revenues jumped roughly 11.2% year over year to $8,358 million.

Huntsman Corporation Price, Consensus and EPS Surprise

Huntsman Corporation Price, Consensus and EPS Surprise | Huntsman Corporation Quote

Segment Highlights

Polyurethanes: Revenues for the Polyurethanes unit jumped around 27.3% year over year to $1,227 million on the back of higher average selling price and sales volumes.

Performance Products: Revenues for the Performance Products unit remained almost flat at $514 million, as improved mix and higher selling prices were offset by lower sales volumes.

Advanced Materials: Revenues for the Advanced Materials unit increased around 5% to $258 million on the back of higher average selling prices.

Textile Effects: Revenues for the Textile Effects unit went up around 3% to $190 million on the back of volume growth, partly offset by unfavorable product mix and lower selling prices.

Financial Position

Huntsman generated free cash flow of $190 million during the fourth quarter, up around 42.9% from $133 million a year ago. During 2017, the company repaid debt worth roughly $2.1 billion.  

Huntsman had total cash and unused borrowing capacity worth $1,247 million at the end of 2017.  

Outlook

Huntsman stated that it will continue investing in operational reliability and organic growth. The company expects to generate $450-$650 million of free cash flow in the next few years and will also pursue acquisitions that create value, stronger earnings and growth in its downstream business.  

Price Performance

Huntsman’s shares have moved up 9.3% over the last three months, outperforming 2.5% growth recorded by its industry.



 

Zacks Rank & Other Stocks to Consider

Huntsman currently carries a Zacks Rank #2 (Buy).

Some other stocks in the basic materials space worth considering are Steel Dynamics, Inc. (STLD - Free Report) , The Mosaic Company (MOS - Free Report) and United States Steel Corporation (X - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have soared 37.7% over the last six months.

Mosaic has an expected long-term earnings growth rate of 9.5%. Its shares have moved up 43.2% over the past six months.

U.S. Steel has an expected long-term earnings growth rate of 8%. Its shares have rallied 72.2% over the last six months.

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