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Olin's (OLN) Earnings Miss, Revenues Beat Estimates in Q4
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Olin Corporation (OLN - Free Report) posted a profit of $306.6 million or $1.89 per share in fourth-quarter 2021 against a loss of $33 million or 21 cents in the year-ago quarter.
Barring one-time items, earnings were $2.41 per share in the reported quarter. It missed the Zacks Consensus Estimate of $2.53.
The chemical maker’s revenues climbed around 47% year over year to $2,430.4 million in the quarter. The top line surpassed the Zacks Consensus Estimate of $2,349 million. The company recorded higher sales across all its segments in the reported quarter. It benefited from higher pricing in the quarter.
Olin Corporation Price, Consensus and EPS Surprise
Chlor Alkali Products and Vinyls: Revenues in the division jumped roughly 57% year over year to $1,244.1 million in the reported quarter on the back of higher pricing, partly offset by lower volumes.
Epoxy: Revenues in the division went up around 53% year over year to $795.7 million led by higher pricing.
Winchester: Revenues rose around 15% year over year to $390.6 million on higher commercial ammunition pricing.
FY21 Results
Earnings for full-year 2021 were $7.96 per share compared with a loss of $6.14 per share a year ago. Net sales shot up roughly 55% year over year to $8,910.6 million.
Financials
Olin ended 2021 with cash and cash equivalents of $180.5 million, down roughly 5% year over year. Long-term debt was $2,578.2 million at the end of the year, down around 33%. The company reduced debt by around $1.1 billion during 2021.
In the reported quarter, the company repurchased around 3.2 million shares of common stock for $183.6 million. It also bought back around 4.7 million shares worth $251.9 million in 2021.
Outlook
Going forward, Olin expects sequentially higher raw material and operating costs, particularly increased natural gas and electrical power costs, in early 2022. It sees results from its Chemical businesses in the first quarter of 2022 to be similar to fourth-quarter 2021 levels. The company also envisions first-quarter results in its Winchester business to rise from fourth quarter 2021.
Price Performance
Shares of Olin have surged 82.1% in a year, significantly outperforming the industry’s growth of 10.3%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Olin currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Albemarle Corporation (ALB - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 39.5% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 68% in a year.
Albemarle, carrying a Zacks Rank #1, has an expected earnings growth rate of 51.3% for the current year. ALB's consensus estimate for the current year has been revised 5.4% upward over the past 60 days.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB shares have gained around 24% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 85% in a year.
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Olin's (OLN) Earnings Miss, Revenues Beat Estimates in Q4
Olin Corporation (OLN - Free Report) posted a profit of $306.6 million or $1.89 per share in fourth-quarter 2021 against a loss of $33 million or 21 cents in the year-ago quarter.
Barring one-time items, earnings were $2.41 per share in the reported quarter. It missed the Zacks Consensus Estimate of $2.53.
The chemical maker’s revenues climbed around 47% year over year to $2,430.4 million in the quarter. The top line surpassed the Zacks Consensus Estimate of $2,349 million. The company recorded higher sales across all its segments in the reported quarter. It benefited from higher pricing 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 jumped roughly 57% year over year to $1,244.1 million in the reported quarter on the back of higher pricing, partly offset by lower volumes.
Epoxy: Revenues in the division went up around 53% year over year to $795.7 million led by higher pricing.
Winchester: Revenues rose around 15% year over year to $390.6 million on higher commercial ammunition pricing.
FY21 Results
Earnings for full-year 2021 were $7.96 per share compared with a loss of $6.14 per share a year ago. Net sales shot up roughly 55% year over year to $8,910.6 million.
Financials
Olin ended 2021 with cash and cash equivalents of $180.5 million, down roughly 5% year over year. Long-term debt was $2,578.2 million at the end of the year, down around 33%. The company reduced debt by around $1.1 billion during 2021.
In the reported quarter, the company repurchased around 3.2 million shares of common stock for $183.6 million. It also bought back around 4.7 million shares worth $251.9 million in 2021.
Outlook
Going forward, Olin expects sequentially higher raw material and operating costs, particularly increased natural gas and electrical power costs, in early 2022. It sees results from its Chemical businesses in the first quarter of 2022 to be similar to fourth-quarter 2021 levels. The company also envisions first-quarter results in its Winchester business to rise from fourth quarter 2021.
Price Performance
Shares of Olin have surged 82.1% in a year, significantly outperforming the industry’s growth of 10.3%.
Zacks Rank & Other Key Picks
Olin currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Albemarle Corporation (ALB - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 39.5% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 68% in a year.
Albemarle, carrying a Zacks Rank #1, has an expected earnings growth rate of 51.3% for the current year. ALB's consensus estimate for the current year has been revised 5.4% upward over the past 60 days.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB shares have gained around 24% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 85% in a year.