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Huntsman (HUN) to Report Q4 Earnings: What's in the Cards?

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Huntsman Corporation (HUN - Free Report) is set to release fourth-quarter 2021 results before market open on Feb 15. The company’s earnings are likely to have benefited from healthy demand and prices for MDI (methylene diphenyl diisocyanate) and acquisitions. However, it is likely to have faced headwinds from higher raw material and logistics costs.

Huntsman beat the Zacks Consensus Estimate for earnings in all of the last four quarters. The company has a trailing-four quarter earnings surprise of 12.8%, on average. The company posted an earnings surprise of 18.7% in the last reported quarter.

Shares of Huntsman are up 29.5% in the past year compared with an 8.5% rise of its industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

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

Zacks Model

Our proven model predicts 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 earnings beat.

Earnings ESP: Earnings ESP for Huntsman is +0.09%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at 88 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.

What do the Estimates Say?

The Zacks Consensus Estimate for Huntsman’s fourth-quarter revenues is currently pinned at $2,232 million, indicating 33.8% year-over-year increase.

The Zacks Consensus Estimate for the Advanced Materials division’s revenues is pegged at $303 million, suggesting a 46.4% rise year over year.

The consensus estimate for the Performance Products unit’s revenues is pegged at $394 million, indicating an increase of 48.7% year over year.

The consensus estimate for the Polyurethanes’ unit’s revenues is pegged at $1,360 million, indicating an increase of 32% year over year.

The consensus estimate for the Textile Effects division’s revenues is pegged at $200 million, indicating an increase of 15.6% 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. Higher MDI prices and demand is expected to have supported performance in the core Polyurethanes segment. Sales volume is likely to have been driven by strong demand and the global economic revival.

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

The company is likely to have faced headwinds from pressure on automotive volumes in the fourth quarter due to the impact of a semiconductor shortage. The company is expected to have been impacted by higher raw material costs led by supply disruptions. The unfavorable impacts from higher costs of raw materials and logistics challenges are expected to get reflected in the quarterly performance.

Huntsman Corporation Price and EPS Surprise

Huntsman Corporation Price and EPS Surprise

Huntsman Corporation price-eps-surprise | Huntsman Corporation Quote

Other 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 too have the right combination of elements to post an earnings beat this quarter:

The Mosaic Company (MOS - Free Report) , scheduled to release earnings on Feb 22, has an Earnings ESP of +1.80% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Mosaic's fourth-quarter earnings has been revised 10.4% upward in the past 60 days. The consensus estimate for MOS’s earnings for the quarter is currently pegged at $1.95.

CF Industries Holdings, Inc. (CF - Free Report) , slated to release earnings on Feb 15, has an Earnings ESP of +7.88% and carries a Zacks Rank #3.

The consensus estimate for CF Industries' fourth-quarter earnings has been revised 31.5% upward in the past 60 days. The Zacks Consensus Estimate for CF’s quarterly earnings is pegged at $3.41.

Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on Feb 16, has an Earnings ESP of +2.61% and sports a Zacks Rank #1.

The Zacks Consensus Estimate for Nutrien’s fourth-quarter earnings has been revised 17.4% upward in the past 60 days. The consensus estimate for NTR’s earnings for the quarter is currently pegged at $2.30.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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