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LyondellBasell (LYB) to Post Q2 Earnings: What's in Store?

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LyondellBasell Industries N.V. (LYB - Free Report) is set to release second-quarter 2021 results on Jul 30, before the opening bell. The company is likely to have benefited from favorable market trends and higher demand for its products on a recovery in the global economy.

LyondellBasell beat the Zacks Consensus Estimate for earnings in all of the trailing four quarters. It has a trailing four-quarter earnings surprise of roughly 29.8%, on average. The company posted an earnings surprise of 20% in the last reported quarter.

Shares of LyondellBasell have gained 45.8% in the past year compared with 32.4% rise of the industry.

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Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for LyondellBasell this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Earnings ESP for LyondellBasell is +6.99%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at $5.67. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: LyondellBasell currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

What do the Estimates Say?

The Zacks Consensus Estimate for second-quarter consolidated sales for LyondellBasell is pegged at $11,321 million, which suggests an increase of around 104.1% year over year.

The Zacks Consensus Estimate for sales in LyondellBasell’s Olefins & Polyolefins — Americas unit is currently pegged at $3,533 million, which suggests an increase of 146.5% year over year.

The Zacks Consensus Estimate for sales in the Olefins & Polyolefins — Europe, Asia, International segment is currently pegged at $3,442 million, which suggests an increase of 102.2% year over year.

The consensus mark for sales in the Intermediates and Derivatives segment is currently pegged at $2,156 million, which suggests an increase of 86.3% year over year.

The Zacks Consensus Estimate for sales in the Advanced Polymer Solutions segment is pegged at $1,231 million, indicating a 74.6% year-over-year rise.

The Zacks Consensus Estimate for sales in the Refining segment is currently at $1,886 million, which indicates an increase of 105.2% year over year.

The consensus mark for sales in the Technology segment is currently pegged at $178 million, which suggests flat sales year over year.

Factors at Play in Q2

The company is likely to have gained from strong consumer-driven demand, sustained healthy demand from the packaging market and continued recovery in durable goods market in the quarter to be reported. It is expected to have benefited from higher polyethylene margins in the quarter. The margins are expected to have been driven by consistently high demand and low inventories.

The company is likely to have benefited from both volume and margin improvement in its Olefins & Polyolefins-Americas segment in the second quarter. Margins in its Olefins & Polyolefins - Europe, Asia, International segment is likely to have been driven by strong demand and tight markets.

It is also likely to have witnessed higher margins in the Advanced Polymer Solutions segment in the quarter backed by falling feedstock prices along with continued price improvements. Strong demand for durable goods along with tight market conditions are also expected to have aided performance in the Intermediates and Derivatives unit.

However, the company is likely to have faced headwinds in the Refining segment in the June quarter. Margins in the Refining unit are expected to have been under pressure as demand for gasoline and jet fuel is yet to return to pre-pandemic levels.

LyondellBasell Industries N.V. Price and EPS Surprise

 

LyondellBasell Industries N.V. Price and EPS Surprise

LyondellBasell Industries N.V. price-eps-surprise | LyondellBasell Industries N.V. Quote

 

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this time around.

AdvanSix Inc. (ASIX - Free Report) , scheduled to release earnings on Jul 30, has an Earnings ESP of +21.30% and a Zacks Rank #2.

Westlake Chemical Corporation (WLK - Free Report) scheduled to release earnings on Aug 3, has an Earnings ESP of +1.50% and carries a Zacks Rank #2.

Eastman Chemical Company (EMN - Free Report) , scheduled to release earnings on Aug 2, has an Earnings ESP of +0.90% and carries a Zacks Rank #3.