Olin Corp. (OLN - Free Report) plummeted 21% on Friday after announcing lowered guidance for both Q2 and this fiscal year.
Based in Clayton, MO, Olin manufactures chemicals, metals, and ammunition. It will announce Q2 earnings on August 1st, but lowered estimates drove down investor confidence significantly.
OLN stated that they now expect net income at breakeven levels, compared to prior guidance of $0.10-$0.20 in earnings per share. Their EBITDA has been adjusted to about $180 million, down from the $220 million-$240 million range indicated by their previous guidance.
As per their official announcement, these revisions to prior expectations were “driven primarily by weaker than expected domestic soda demand during May and June.” This led to higher export sales, driving down the average caustic soda price.
Other influencing factors include higher raw material costs, decreased demand from refrigerant, packing and agricultural customers, as well as non-cash mark-to-market expenses.
OLN revised their fiscal year EBITDA to between $840 million and $900 million, notably lower than their previous guidance of between $915 million and $985 million.
President and CEO Jon E. Fischer stated that “We faced several unexpected headwinds that impacted our expected second quarter results, but the fundamentals of the business are unchanged.” The company also expects operational savings of $125 million to $150 million (related to procurement and maintenance) over the next four to six quarters through further integration amongst its subdivisions.
Prior to Friday’s announcement, OLN’s Q2 earnings estimate had been revised down to $0.32 in earnings per share from $0.37 30 days ago. Olin Corp, currently sits at a Zacks Rank #2 (Buy), although this could be subject to change in the near future.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Olin Corp. (OLN - Free Report) plummeted 21% on Friday after announcing lowered guidance for both Q2 and this fiscal year.
Based in Clayton, MO, Olin manufactures chemicals, metals, and ammunition. It will announce Q2 earnings on August 1st, but lowered estimates drove down investor confidence significantly.
OLN stated that they now expect net income at breakeven levels, compared to prior guidance of $0.10-$0.20 in earnings per share. Their EBITDA has been adjusted to about $180 million, down from the $220 million-$240 million range indicated by their previous guidance.
As per their official announcement, these revisions to prior expectations were “driven primarily by weaker than expected domestic soda demand during May and June.” This led to higher export sales, driving down the average caustic soda price.
Other influencing factors include higher raw material costs, decreased demand from refrigerant, packing and agricultural customers, as well as non-cash mark-to-market expenses.
OLN revised their fiscal year EBITDA to between $840 million and $900 million, notably lower than their previous guidance of between $915 million and $985 million.
President and CEO Jon E. Fischer stated that “We faced several unexpected headwinds that impacted our expected second quarter results, but the fundamentals of the business are unchanged.” The company also expects operational savings of $125 million to $150 million (related to procurement and maintenance) over the next four to six quarters through further integration amongst its subdivisions.
Prior to Friday’s announcement, OLN’s Q2 earnings estimate had been revised down to $0.32 in earnings per share from $0.37 30 days ago. Olin Corp, currently sits at a Zacks Rank #2 (Buy), although this could be subject to change in the near future.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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