Huntsman Corporation (HUN - Free Report) logged fourth-quarter 2023 net loss of $71 million or 41 cents per share compared with a loss of $91 million 48 cents per share in the year-ago quarter.
Barring one-time items, adjusted loss per share came in at 21 cents per share for the reported quarter. It was wider than the Zacks Consensus Estimate of a loss of 14 cents.
Revenues were $1,403 million, down around 15% year over year. The top line, however, beat the Zacks Consensus Estimate of $1,324 million. HUN witnessed lower sales across its segments in the quarter on reduced prices and volumes.
Segment Highlights
Polyurethanes: Revenues from the segment declined 16% year on year to $895 million in the reported quarter, owing to lower MDI average selling prices, fewer sales volumes and an adverse sales mix. It was above our estimate of $881 million. MDI average selling prices fell in the quarter due to less favorable supply and demand dynamics.
Performance Products: Revenues fell 15% to $260 million as a result of a decline in average selling prices and modestly lower sales volumes. It was above our estimate of $246 million. Sales volumes fell due to slow construction activities and soft demand in fuel and lubes and other industrial markets.
Advanced Materials: Revenues from the unit declined 10% to $251 million due to reduced sales volumes and lower average selling prices. It was higher than our estimate of $243 million. Sales volumes fell mainly due to lower customer demand in industrial and commodity markets.
FY23 Results
Earnings for full-year 2023 were 57 cents per share compared with earnings of $2.27 per share a year ago. Net sales fell around 24% year over year to $6,111 million.
Financials
Huntsman ended 2023 with cash of $540 million, down around 17% year over year. Long-term debt was $1,676 million, flat year over year.
Net cash provided by operating activities from continuing operations was $166 million in the fourth quarter while free cash flow from continuing operations was $83 million.
Huntsman repurchased approximately 2.1 million shares for roughly $50 million in the fourth quarter. Its board approved a 5% increase to its quarterly dividend.
Outlook
Huntsman said that it witnessed a modest improvement in demand in early 2024 from the lows experienced in the fourth quarter. Although HUN is yet to see a clear inflexion point in demand, it remains optimistic about the future. The company is well-placed to gain significantly from volume leverage once its end markets improve and as it continues to control costs, HUN noted.
Price Performance
Shares of Huntsman have lost 14.9% in the past year against a 16.9% decline of the industry.
Zacks Rank & Key Picks
HUN currently has a Zacks Rank #5 (Strong Sell).
Better-ranked stocks worth a look in the basic materials space include, Carpenter Technology Corporation (CRS - Free Report) , Alpha Metallurgical Resources Inc. (AMR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 34% in the past year. CRS currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alpha Metallurgical Resources’ current-year earnings has been revised upward by 8.8% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 129% in a year.
The consensus estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied roughly 68% in the past year.
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Huntsman Corporation (HUN - Free Report) logged fourth-quarter 2023 net loss of $71 million or 41 cents per share compared with a loss of $91 million 48 cents per share in the year-ago quarter.
Barring one-time items, adjusted loss per share came in at 21 cents per share for the reported quarter. It was wider than the Zacks Consensus Estimate of a loss of 14 cents.
Revenues were $1,403 million, down around 15% year over year. The top line, however, beat the Zacks Consensus Estimate of $1,324 million. HUN witnessed lower sales across its segments in the quarter on reduced prices and volumes.
Segment Highlights
Polyurethanes: Revenues from the segment declined 16% year on year to $895 million in the reported quarter, owing to lower MDI average selling prices, fewer sales volumes and an adverse sales mix. It was above our estimate of $881 million. MDI average selling prices fell in the quarter due to less favorable supply and demand dynamics.
Performance Products: Revenues fell 15% to $260 million as a result of a decline in average selling prices and modestly lower sales volumes. It was above our estimate of $246 million. Sales volumes fell due to slow construction activities and soft demand in fuel and lubes and other industrial markets.
Advanced Materials: Revenues from the unit declined 10% to $251 million due to reduced sales volumes and lower average selling prices. It was higher than our estimate of $243 million. Sales volumes fell mainly due to lower customer demand in industrial and commodity markets.
FY23 Results
Earnings for full-year 2023 were 57 cents per share compared with earnings of $2.27 per share a year ago. Net sales fell around 24% year over year to $6,111 million.
Financials
Huntsman ended 2023 with cash of $540 million, down around 17% year over year. Long-term debt was $1,676 million, flat year over year.
Net cash provided by operating activities from continuing operations was $166 million in the fourth quarter while free cash flow from continuing operations was $83 million.
Huntsman repurchased approximately 2.1 million shares for roughly $50 million in the fourth quarter. Its board approved a 5% increase to its quarterly dividend.
Outlook
Huntsman said that it witnessed a modest improvement in demand in early 2024 from the lows experienced in the fourth quarter. Although HUN is yet to see a clear inflexion point in demand, it remains optimistic about the future. The company is well-placed to gain significantly from volume leverage once its end markets improve and as it continues to control costs, HUN noted.
Price Performance
Shares of Huntsman have lost 14.9% in the past year against a 16.9% decline of the industry.
Zacks Rank & Key Picks
HUN currently has a Zacks Rank #5 (Strong Sell).
Better-ranked stocks worth a look in the basic materials space include, Carpenter Technology Corporation (CRS - Free Report) , Alpha Metallurgical Resources Inc. (AMR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 34% in the past year. CRS currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alpha Metallurgical Resources’ current-year earnings has been revised upward by 8.8% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 129% in a year.
The consensus estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied roughly 68% in the past year.
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Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
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