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Huntsman (HUN) to Report Q2 Earnings: What's in the Cards?

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Huntsman Corporation (HUN - Free Report) is set to release second-quarter 2021 results before market open on Jul 30. The company’s earnings are likely to have benefited from healthy demand for MDI (methylene diphenyl diisocyanate) and acquisitions. However, it is likely to have faced headwinds from weaker demand in aerospace markets as well as higher raw material costs.

Huntsman beat the Zacks Consensus Estimate for earnings in all the last four quarters. The company has a trailing-four quarter earnings surprise of 21.4%, on average. The company posted an earnings surprise of 11.9% in the last reported quarter.

Shares of Huntsman are up 34.4% in the past year compared with 32.1% surge of its industry.

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

What do the Estimates Say?

The Zacks Consensus Estimate for Huntsman’s second-quarter revenues is currently pinned at $1,893 million, which indicates 51.8% year-over-year increase.

The Zacks Consensus Estimate for Huntsman’s Advanced Materials division revenues is pegged at $297 million, suggesting 54.7% rise year over year.

The consensus estimate for Performance Products’ unit’s revenues is at $313 million, indicating an increase of 37.3% year over year.

The consensus estimate for Polyurethanes’ unit’s revenues is pegged at $1,085 million, indicating an increase of 48.6% year over year.

The consensus estimate for Textile Effects division revenues is pegged at $192 million, indicating an increase of 88.2% year over year.

Factors to Watch For

The company is likely to have benefited from healthy demand for MDI driven by megatrends and material substitution. It is seeing demand strength in construction markets. Higher MDI prices and demand is expected to have supported performance in its core Polyurethanes segment.

Huntsman is also expected to have gained from contributions of acquisitions in the to-be-reported quarter. Benefits of CVC Thermoset Specialties and Gabriel acquisitions are expected to reflect on the Advanced Materials unit.

The company is likely to have faced headwinds from weaker demand in aerospace markets, which might have impacted its aerospace revenues and volumes. Huntsman is also expected to have been impacted by the Rotterdam turnaround on its Polyurethanes adjusted EBITDA in the second quarter.

The Polyurethanes segment is also likely to have faced headwind from pressure on automotive volumes in the second quarter due to the impact of semiconductor shortage. The company is expected to have been impacted by higher raw material costs led by supply disruptions.

Zacks Model

Our proven model does not predict an earnings beat for Huntsman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Huntsman is -1.09%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at 82 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Huntsman currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Huntsman Corporation Price and EPS Surprise

 

Huntsman Corporation Price and EPS Surprise

Huntsman Corporation price-eps-surprise | Huntsman Corporation 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 #1.

LyondellBasell Industries N.V. (LYB - Free Report) , scheduled to release earnings on Jul 30, has an Earnings ESP of +6.99% and flaunts a Zacks Rank #1.

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.

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