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Huntsman (HUN) Q3 Earnings Match, Revenues Top Estimates

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Huntsman Corporation (HUN - Free Report) recorded net loss of $8 million or 5 cents per share in third-quarter 2018 against net income of $179 million or 60 cents recorded a year ago.

Barring one-time items, adjusted earnings were 84 cents per share in the quarter, in line with the Zacks Consensus Estimate.

Revenues totaled $2,444 million, up around 13% year over year on higher sales across all segments. The figure beat the Zacks Consensus Estimate of $2,239 million.

Huntsman Corporation Price, Consensus and EPS Surprise

 

 

Segment Highlights

Polyurethanes: Revenues at the segment rose around 13% year over year to $1,355 million on higher average selling price and sales volumes.

Performance Products: Revenues at the unit went up 20% to $599 million on an uptick in average selling prices and volumes.

Advanced Materials: Revenues at the unit increased around 6% to $279 million backed by higher average selling prices and volumes.

Textile Effects: Revenues at the division rose roughly 6% to $204 million buoyed by higher average selling prices that more than offset lower volumes.

Financials

Huntsman generated free cash flow of $226 million during the quarter, down slightly year over year. The company had $446 million of cash at the end of the quarter, down 1.1% year over year. Long-term debt was $2,277 million, down 20% year over year.

The company repurchased around 5.9 million shares worth roughly $175 million during the quarter.

Outlook

Huntsman noted that it continues to strengthen its balance sheet with net leverage improving to 1.3 times. The company is committed to a balanced approach to capital allocation by growing its downstream businesses portfolio while creating shareholder value.

The company also expects around $300-$320 million of capital expenditures this year. It expects adjusted effective tax rate for 2018 at around 19-21%.

Price Performance

Huntsman's shares have lost around 32.6% over the past year, compared with the industry’s fall of 21.1% .

 



Zacks Rank & Stocks to Consider

Huntsman currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (CF - Free Report) , KMG Chemicals, Inc. and The Mosaic Company (MOS - Free Report) .
 
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 21.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

KMG Chemicals has an expected long-term earnings growth rate of 28.5% and a Zacks Rank #1. Its shares have risen 34.4% in a year’s time.

Mosaic has an expected long-term earnings growth rate of 7% and a Zacks Rank #2 (Buy). The company’s shares have rallied 34.4% in the past year.

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