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Olin's (OLN) Earnings and Revenues Beat Estimates in Q3
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Olin Corporation (OLN - Free Report) slipped to a loss of $736.8 million or $4.67 per share in third-quarter 2020 from a profit of $44.2 million or 27 cents per share a year ago.
Excluding one-time items, adjusted loss for the quarter was 20 cents per share, narrower than the Zacks Consensus Estimate of a loss of 23 cents.
The chemical maker’s revenues fell roughly 9% year over year to $1,437.6 million in the quarter. It, however, surpassed the Zacks Consensus Estimate of $1,395.5 million. Weaker year-over-year pricing and volumes hurt sales across the Chlor Alkali Products & Vinyls and Epoxy segments in the quarter.
Olin Corporation Price, Consensus and EPS Surprise
Chlor Alkali Products and Vinyls: Revenues at the division fell roughly 14% year over year to $755.1 million in the reported quarter on reduced volumes and lower caustic soda and ethylene dichloride pricing.
Epoxy: Revenues at the division dropped around 7% year over year to $476.1 million on reduced epoxy resin volumes and lower product prices.
Winchester: Revenues rose around 9% year over year to $206.4 million on increased commercial ammunition sales.
Financials
Olin ended the quarter with cash and cash equivalents of $282.7 million, up roughly 59% year over year. Long-term debt was $3,959.5 million at the end of the quarter, up around 19% year over year.
Outlook
Olin said that it saw sequential pricing improvement in the third quarter for chlorine and almost all chlorine derivatives and its newly established Electrochemical Unit (“ECU”). The company expects its recent price increases for chlorine, epoxy resins, ethylene dichloride, bleach and chlorinated organics to favorably contribute to ECU profit contribution index in the fourth quarter. However, Olin envisions volumes in the fourth quarter to be challenged on customer year-end inventory reductions and the company selectively selling less into poor quality markets.
Price Performance
Shares of Olin have lost 4.4% over a year compared with the industry's decline of 1.2%.
Zacks Rank & Key Picks
Olin currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Agnico Eagle Mines Limited (AEM - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and B2Gold Corp. (BTG - Free Report) .
Agnico Eagle has a projected earnings growth rate of 103.1% for the current year. The company’s shares have gained around 34% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Barrick Gold has an expected earnings growth rate of 100% for the current year. The company’s shares have surged around 62% in the past year. It currently carries a Zacks Rank #2 (Buy).
B2Gold has a projected earnings growth rate of 250% for the current year. The company’s shares have shot up roughly 77% in a year. It currently carries a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Olin's (OLN) Earnings and Revenues Beat Estimates in Q3
Olin Corporation (OLN - Free Report) slipped to a loss of $736.8 million or $4.67 per share in third-quarter 2020 from a profit of $44.2 million or 27 cents per share a year ago.
Excluding one-time items, adjusted loss for the quarter was 20 cents per share, narrower than the Zacks Consensus Estimate of a loss of 23 cents.
The chemical maker’s revenues fell roughly 9% year over year to $1,437.6 million in the quarter. It, however, surpassed the Zacks Consensus Estimate of $1,395.5 million. Weaker year-over-year pricing and volumes hurt sales across the Chlor Alkali Products & Vinyls and Epoxy segments in the quarter.
Olin Corporation Price, Consensus and EPS Surprise
Olin Corporation price-consensus-eps-surprise-chart | Olin Corporation Quote
Segment Review
Chlor Alkali Products and Vinyls: Revenues at the division fell roughly 14% year over year to $755.1 million in the reported quarter on reduced volumes and lower caustic soda and ethylene dichloride pricing.
Epoxy: Revenues at the division dropped around 7% year over year to $476.1 million on reduced epoxy resin volumes and lower product prices.
Winchester: Revenues rose around 9% year over year to $206.4 million on increased commercial ammunition sales.
Financials
Olin ended the quarter with cash and cash equivalents of $282.7 million, up roughly 59% year over year. Long-term debt was $3,959.5 million at the end of the quarter, up around 19% year over year.
Outlook
Olin said that it saw sequential pricing improvement in the third quarter for chlorine and almost all chlorine derivatives and its newly established Electrochemical Unit (“ECU”). The company expects its recent price increases for chlorine, epoxy resins, ethylene dichloride, bleach and chlorinated organics to favorably contribute to ECU profit contribution index in the fourth quarter. However, Olin envisions volumes in the fourth quarter to be challenged on customer year-end inventory reductions and the company selectively selling less into poor quality markets.
Price Performance
Shares of Olin have lost 4.4% over a year compared with the industry's decline of 1.2%.
Zacks Rank & Key Picks
Olin currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Agnico Eagle Mines Limited (AEM - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and B2Gold Corp. (BTG - Free Report) .
Agnico Eagle has a projected earnings growth rate of 103.1% for the current year. The company’s shares have gained around 34% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Barrick Gold has an expected earnings growth rate of 100% for the current year. The company’s shares have surged around 62% in the past year. It currently carries a Zacks Rank #2 (Buy).
B2Gold has a projected earnings growth rate of 250% for the current year. The company’s shares have shot up roughly 77% in a year. It currently carries a Zacks Rank #2.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>