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Chemical Stock Earnings to Watch on Feb 9: DD, FMC & More
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A few chemical companies are lined up to report their quarterly numbers tomorrow. A rebound in end-market demand from the coronavirus-induced slowdown is likely to have aided the performance of chemical companies in the fourth quarter.
The chemical industry faced the heat from demand shocks for much of first-half 2020 as a result of sluggish global industrial activities amid the coronavirus pandemic. Shutdowns and travel restrictions to blunt the spread of infection paralyzed industrial and economic activities, sapping demand for chemicals across major end-use markets such as construction, automotive and electronics.
Notably, disruptions associated with the pandemic hurt chemical demand in China, a major consumer, as industrial activities in the country took a blow due to lockdown restrictions. Moreover, a downturn in industrial and manufacturing activities due to lockdowns affected demand for chemicals in North America and Europe.
However, the chemical industry has bounced back from the virus-led slowdown on a pickup in demand in key markets, a strong economic rebound in China and the reopening of the major economies around the world. Demand for chemicals started to pick up in the third quarter with a rebound in global economic activities. The upturn in demand is being driven by recovering manufacturing and industrial activities globally.
The automotive sector has witnessed accelerated recovery following the pandemic-led slump on the back of a strong rebound in customer demand for new vehicles. The recovery of the automotive industry that started in the second quarter of 2020 gained momentum in the second half of the year on an uptick in demand. Global automotive production has rebounded from shutdowns due to significant disruptions in supply chains, resulting from coronavirus.
The construction sector has also recovered on the restart of projects that were stalled earlier partly due to supply chain disruptions. Residential construction is picking up around the world, supported by lower interest rates.
A rebound in major markets is likely to have spurred demand for chemicals in the December quarter. Higher industrial demand is likely to have boosted sales volumes and the top line of chemical companies in the fourth quarter.
Moreover, benefits of strategic measures, including cost management and productivity improvement, acquisitions, and efficiency improvement and actions to raise selling prices to counter cost inflation might reflect on the fourth-quarter results of the companies in this space.
Per the Zacks industry classification, the chemical industry falls under the broader Basic Materials sector. Basic Materials is among the sectors that are expected to deliver double-digit earnings growth in the fourth quarter. Overall earnings for the sector are projected to rise 23% on 1.4% higher revenues, per the latest Earnings Trends. The projections reflect a marked improvement from an 11.5% decline in earnings on an 8.2% drop in revenues witnessed in the third quarter.
Among the chemical companies that have already come up with their quarterly numbers, we have seen solid earnings beats from prominent names such as Dow Inc. (DOW - Free Report) , Eastman Chemical Company (EMN - Free Report) and Celanese Corporation (CE - Free Report) on the back of a rebound in end-market demand.
We take a look at four chemical companies that are gearing up to report their Q4 results on Feb 9.
DuPont de Nemours, Inc. (DD - Free Report) will report results before the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for revenues for the fourth quarter for DuPont is currently pegged at $5,207.3 million. The consensus estimate for earnings is 92 cents.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missed once. In this timeframe, it delivered an earnings surprise of around 8.3%, on average.
Benefits of cost savings and productivity actions are expected to get reflected on the company’s fourth-quarter results. However, its results are likely to reflect the impacts of weak demand across certain markets and lower nylon prices. (Read more: DuPont Warms Up to Q4 Earnings: What's in the Offing?)
The Zacks Consensus Estimate for revenues for the fourth quarter is currently pegged at $1,135.6 million. The consensus estimate for earnings is $1.38.
The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 7.7%, on average.
The company’s results are likely to have been affected by supply chain disruptions in North America, drought conditions in Brazil and import challenges in Argentina. It is also expected to have faced some headwinds from cost inflation and unfavorable currency swings. (Read more: FMC Corp to Post Q4 Earnings: What's in the Cards?)
W. R. Grace & Co. will report results before the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #3.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 6%.
The Zacks Consensus Estimate for revenues for the fourth quarter is currently pegged at $469 million. The consensus estimate for earnings stands at 85 cents.
The company is likely to have gained from a recovery in its end markets and its actions to manage costs in the wake of the pandemic. Strength across its pharma business and non-durable markets (including food packaging and hygiene) as well as improving trends in transportation fuels are likely to have aided its performance. However, some softness in durable end-markets including automotive is likely to have continued in the fourth quarter.
Avient Corporation (AVNT - Free Report) will report results before the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy).
The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 7.1%.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $924 million. The consensus estimate for earnings stands at 49 cents.
The company is likely to have benefited from improved demand conditions across its businesses, strength in its Composites platform and synergies of the acquisition of Clariant Masterbatch. Strong demand for its composite and health care applications is expected to have continued in the fourth quarter.
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Image: Bigstock
Chemical Stock Earnings to Watch on Feb 9: DD, FMC & More
A few chemical companies are lined up to report their quarterly numbers tomorrow. A rebound in end-market demand from the coronavirus-induced slowdown is likely to have aided the performance of chemical companies in the fourth quarter.
The chemical industry faced the heat from demand shocks for much of first-half 2020 as a result of sluggish global industrial activities amid the coronavirus pandemic. Shutdowns and travel restrictions to blunt the spread of infection paralyzed industrial and economic activities, sapping demand for chemicals across major end-use markets such as construction, automotive and electronics.
Notably, disruptions associated with the pandemic hurt chemical demand in China, a major consumer, as industrial activities in the country took a blow due to lockdown restrictions. Moreover, a downturn in industrial and manufacturing activities due to lockdowns affected demand for chemicals in North America and Europe.
However, the chemical industry has bounced back from the virus-led slowdown on a pickup in demand in key markets, a strong economic rebound in China and the reopening of the major economies around the world. Demand for chemicals started to pick up in the third quarter with a rebound in global economic activities. The upturn in demand is being driven by recovering manufacturing and industrial activities globally.
The automotive sector has witnessed accelerated recovery following the pandemic-led slump on the back of a strong rebound in customer demand for new vehicles. The recovery of the automotive industry that started in the second quarter of 2020 gained momentum in the second half of the year on an uptick in demand. Global automotive production has rebounded from shutdowns due to significant disruptions in supply chains, resulting from coronavirus.
The construction sector has also recovered on the restart of projects that were stalled earlier partly due to supply chain disruptions. Residential construction is picking up around the world, supported by lower interest rates.
A rebound in major markets is likely to have spurred demand for chemicals in the December quarter. Higher industrial demand is likely to have boosted sales volumes and the top line of chemical companies in the fourth quarter.
Moreover, benefits of strategic measures, including cost management and productivity improvement, acquisitions, and efficiency improvement and actions to raise selling prices to counter cost inflation might reflect on the fourth-quarter results of the companies in this space.
Per the Zacks industry classification, the chemical industry falls under the broader Basic Materials sector. Basic Materials is among the sectors that are expected to deliver double-digit earnings growth in the fourth quarter. Overall earnings for the sector are projected to rise 23% on 1.4% higher revenues, per the latest Earnings Trends. The projections reflect a marked improvement from an 11.5% decline in earnings on an 8.2% drop in revenues witnessed in the third quarter.
Among the chemical companies that have already come up with their quarterly numbers, we have seen solid earnings beats from prominent names such as Dow Inc. (DOW - Free Report) , Eastman Chemical Company (EMN - Free Report) and Celanese Corporation (CE - Free Report) on the back of a rebound in end-market demand.
We take a look at four chemical companies that are gearing up to report their Q4 results on Feb 9.
DuPont de Nemours, Inc. (DD - Free Report) will report results before the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for revenues for the fourth quarter for DuPont is currently pegged at $5,207.3 million. The consensus estimate for earnings is 92 cents.
The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missed once. In this timeframe, it delivered an earnings surprise of around 8.3%, on average.
Benefits of cost savings and productivity actions are expected to get reflected on the company’s fourth-quarter results. However, its results are likely to reflect the impacts of weak demand across certain markets and lower nylon prices. (Read more: DuPont Warms Up to Q4 Earnings: What's in the Offing?)
DuPont de Nemours, Inc. Price and EPS Surprise
DuPont de Nemours, Inc. price-eps-surprise | DuPont de Nemours, Inc. Quote
FMC Corporation (FMC - Free Report) will report results after the closing bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for revenues for the fourth quarter is currently pegged at $1,135.6 million. The consensus estimate for earnings is $1.38.
The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of 7.7%, on average.
The company’s results are likely to have been affected by supply chain disruptions in North America, drought conditions in Brazil and import challenges in Argentina. It is also expected to have faced some headwinds from cost inflation and unfavorable currency swings. (Read more: FMC Corp to Post Q4 Earnings: What's in the Cards?)
FMC Corporation Price and EPS Surprise
FMC Corporation price-eps-surprise | FMC Corporation Quote
W. R. Grace & Co. will report results before the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #3.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 6%.
The Zacks Consensus Estimate for revenues for the fourth quarter is currently pegged at $469 million. The consensus estimate for earnings stands at 85 cents.
The company is likely to have gained from a recovery in its end markets and its actions to manage costs in the wake of the pandemic. Strength across its pharma business and non-durable markets (including food packaging and hygiene) as well as improving trends in transportation fuels are likely to have aided its performance. However, some softness in durable end-markets including automotive is likely to have continued in the fourth quarter.
W.R. Grace & Co. Price and EPS Surprise
W.R. Grace & Co. price-eps-surprise | W.R. Grace & Co. Quote
Avient Corporation (AVNT - Free Report) will report results before the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy).
The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 7.1%.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $924 million. The consensus estimate for earnings stands at 49 cents.
The company is likely to have benefited from improved demand conditions across its businesses, strength in its Composites platform and synergies of the acquisition of Clariant Masterbatch. Strong demand for its composite and health care applications is expected to have continued in the fourth quarter.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>