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Olin's (OLN) Earnings and Revenues Surpass Estimates in Q2
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Olin Corporation (OLN - Free Report) posted a profit of $355.8 million or $2.17 per share in second-quarter 2021 against a loss of $120.1 million or 76 cents in the year-ago quarter.
Excluding one-time items, adjusted earnings for the quarter were $1.73 per share that beat the Zacks Consensus Estimate of $1.45.
The chemical maker’s revenues surged roughly 79% year over year to $2,221.3 million in the quarter. It also surpassed the Zacks Consensus Estimate of $2,052.2 million. The company saw strong sales across all its segments in the second quarter. It benefited from higher pricing and volumes in the quarter.
Olin Corporation Price, Consensus and EPS Surprise
Chlor Alkali Products and Vinyls: Revenues in the division rose 48.5% year over year to $967.3 million in the reported quarter due to higher pricing across all products and improved volumes.
Epoxy: Revenues in the division skyrocketed 113.9% year over year to $850 million on higher pricing and volumes.
Winchester: Revenues shot up 109.8% year over year to $404 million on increased commercial and military sales as well as higher commercial ammunition pricing.
Financials
Olin ended the second quarter with cash and cash equivalents of $272.8 million, up roughly 14.7% year over year. Long-term debt was $3,381.8 million at the end of the quarter, down around 17% year over year.
Outlook
Olin expects to deliver adjusted EBITDA of at least $2.1 billion for 2021.
The company anticipates Chlor Alkali Products and Vinyls, Epoxy, and Winchester segments’ third-quarter results to increase sequentially.
Moreover, it expects third-quarter 2021 adjusted EBITDA to improve sequentially from second-quarter 2021 levels.
Price Performance
Shares of Olin have catapulted 273.7% in a year, higher than the industry’s growth of 34%.
Image: Bigstock
Olin's (OLN) Earnings and Revenues Surpass Estimates in Q2
Olin Corporation (OLN - Free Report) posted a profit of $355.8 million or $2.17 per share in second-quarter 2021 against a loss of $120.1 million or 76 cents in the year-ago quarter.
Excluding one-time items, adjusted earnings for the quarter were $1.73 per share that beat the Zacks Consensus Estimate of $1.45.
The chemical maker’s revenues surged roughly 79% year over year to $2,221.3 million in the quarter. It also surpassed the Zacks Consensus Estimate of $2,052.2 million. The company saw strong sales across all its segments in the second quarter. It benefited from higher pricing and volumes 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 in the division rose 48.5% year over year to $967.3 million in the reported quarter due to higher pricing across all products and improved volumes.
Epoxy: Revenues in the division skyrocketed 113.9% year over year to $850 million on higher pricing and volumes.
Winchester: Revenues shot up 109.8% year over year to $404 million on increased commercial and military sales as well as higher commercial ammunition pricing.
Financials
Olin ended the second quarter with cash and cash equivalents of $272.8 million, up roughly 14.7% year over year. Long-term debt was $3,381.8 million at the end of the quarter, down around 17% year over year.
Outlook
Olin expects to deliver adjusted EBITDA of at least $2.1 billion for 2021.
The company anticipates Chlor Alkali Products and Vinyls, Epoxy, and Winchester segments’ third-quarter results to increase sequentially.
Moreover, it expects third-quarter 2021 adjusted EBITDA to improve sequentially from second-quarter 2021 levels.
Price Performance
Shares of Olin have catapulted 273.7% in a year, higher than the industry’s growth of 34%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, Olin carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Orion Engineered Carbons S.A (OEC - Free Report) , LyondellBasell Industries N.V. (LYB - Free Report) and Cabot Corporation (CBT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Orion has a projected earnings growth rate of 79.8% for the current year. The company’s shares have grown 70.5% over a year.
LyondellBasell has a projected earnings growth rate of 222.6% for the current year. The company’s shares have risen 46.5% over a year.
Cabot has a projected earnings growth rate of 137.5% for the current year. The company’s shares have rallied 42.4% over a year.