A few chemical companies are lined up to report their quarterly results on Aug 3. The chemical industry falls under the broader Basic Materials sector. The sector is one among the eight out of the 16 Zacks sectors that are expected to post negative earnings growth in the second quarter. On a year-over-year basis, earnings are expected to decline 10.6% on 7.6% lower sales, according to the latest Earnings Preview report.
Based on the earnings scorecard as of Jul 29, 65% of the sector participants on the S&P 500 index have reported their quarterly numbers. Earnings for these companies are down 5.9% from the same period last year. Revenues have also declined 10.1%.
The chemical industry is gradually gaining strength on the back of sustained momentum in the automotive space and rebounding construction markets. Chemical companies are looking for cost synergy opportunities and enhanced operational scale through consolidations amid nagging macroeconomic challenges. These companies also remain actively focused on increasing their reach in high-growth markets in a bid to cut their exposure to businesses that are grappling with depressed demand and input cost pressures.
However, some industry-specific challenges, Eurozone’s tepid recovery and concerns over China’s future growth remain sources of uncertainty for the chemical industry.
Let’s take a peek at these four chemical companies that are slated to report their second-quarter results on Aug 3.
Albemarle Corporation (ALB - Free Report) , which will report after the bell, has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.00. The company carries a favorable Zacks Rank #3 (Hold), but its 0.00% ESP makes surprise prediction difficult. Albemarle surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 22.69%.
Tronox Limited (TROX - Free Report) will report after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 30 cents. The company carries a Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. Tronox missed estimates in the trailing four quarters with an average negative surprise of 1,796.72%.
Ingevity Corporation (NGVT - Free Report) will report after the close. The company is expected to come up with a positive earnings surprise as it carries a Zacks Rank #3 and Earnings ESP of +2.04%.
Axiall Corporation has an Earnings ESP of -136.36% as the Most Accurate estimate stands at a loss of 26 cents while the Zacks Consensus Estimate is pegged at a loss of 11 cents. The stock carries a Zacks Rank #1 (Strong Buy). But a negative ESP makes surprise prediction difficult. Axiall beat the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 174.80%.
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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 >>
A few chemical companies are lined up to report their quarterly results on Aug 3. The chemical industry falls under the broader Basic Materials sector. The sector is one among the eight out of the 16 Zacks sectors that are expected to post negative earnings growth in the second quarter. On a year-over-year basis, earnings are expected to decline 10.6% on 7.6% lower sales, according to the latest Earnings Preview report.
Based on the earnings scorecard as of Jul 29, 65% of the sector participants on the S&P 500 index have reported their quarterly numbers. Earnings for these companies are down 5.9% from the same period last year. Revenues have also declined 10.1%.
The chemical industry is gradually gaining strength on the back of sustained momentum in the automotive space and rebounding construction markets. Chemical companies are looking for cost synergy opportunities and enhanced operational scale through consolidations amid nagging macroeconomic challenges. These companies also remain actively focused on increasing their reach in high-growth markets in a bid to cut their exposure to businesses that are grappling with depressed demand and input cost pressures.
However, some industry-specific challenges, Eurozone’s tepid recovery and concerns over China’s future growth remain sources of uncertainty for the chemical industry.
Let’s take a peek at these four chemical companies that are slated to report their second-quarter results on Aug 3.
Albemarle Corporation (ALB - Free Report) , which will report after the bell, has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.00. The company carries a favorable Zacks Rank #3 (Hold), but its 0.00% ESP makes surprise prediction difficult. Albemarle surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 22.69%.
Tronox Limited (TROX - Free Report) will report after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 30 cents. The company carries a Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. Tronox missed estimates in the trailing four quarters with an average negative surprise of 1,796.72%.
Ingevity Corporation (NGVT - Free Report) will report after the close. The company is expected to come up with a positive earnings surprise as it carries a Zacks Rank #3 and Earnings ESP of +2.04%.
Axiall Corporation has an Earnings ESP of -136.36% as the Most Accurate estimate stands at a loss of 26 cents while the Zacks Consensus Estimate is pegged at a loss of 11 cents. The stock carries a Zacks Rank #1 (Strong Buy). But a negative ESP makes surprise prediction difficult. Axiall beat the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 174.80%.
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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