We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Olin (OLN) to Report Q1 Earnings: What's in the Offing?
Read MoreHide Full Article
Olin Corporation (OLN - Free Report) is set to release first-quarter 2022 results after market close on Apr 28. The company’s productivity actions and the Lake City contract are likely to get reflected in its first-quarter numbers. However, Olin is likely to have faced headwinds stemming from higher raw material costs.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing the same once. It has a trailing four-quarter earnings surprise of roughly 10.8%, on average. The company reported a negative earnings surprise of 4.8% in the last reported quarter.
Olin’s shares have surged 31.8% in the past year against a 3.5% decline of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for Olin’s revenues in the to-be-reported quarter is pegged at $2,348 million, suggesting a year-over-year increase of 22.4%.
The consensus mark for net sales in the Chlor Alkali Products and the Vinyls unit is currently pegged at $1,180 million for the first quarter, calling for a 36.1% year-over-year increase.
The Zacks Consensus Estimate for the Winchester segment’s net sales is currently pegged at $397 million, suggesting a 2.1% rise from the year-ago quarter’s level. The same for the Epoxy division is pegged at $793 million, indicating a 19.6% year-over-year increase.
Factors at Play in Q1
The Lake City U.S. Army ammunition contract is likely to have aided the performance of the company’s Winchester business. The multi-year contract is expected to have contributed to sales and profitability in the first quarter.
Productivity actions are likely to have contributed to first-quarter performance. It is also expected to have benefited from higher pricing in the quarter.
The company is expected to have faced challenges from cost-related headwinds in raw materials. OLN is also likely to have been impacted by higher natural gas and electrical power costs in the quarter. Higher commodity costs are expected to have exerted pressure on the margins.
Olin is also likely to have witnessed softer epoxy resin demand in Europe in the first quarter, exacerbated by the invasion of Ukraine by Russia.
Zacks Model
Our proven model does not predict an earnings beat for Olin 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. But that’s not the case here.
Earnings ESP: Earnings ESP for Olin is -0.57%. The Zacks Consensus Estimate for first-quarter earnings is currently pegged at $2.33. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Olin currently carries a Zacks Rank #3.
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Ashland's fiscal second-quarter earnings has been revised 14.3% upward in the past 60 days. The consensus estimate for ASH’s earnings for the quarter is currently pegged at $1.36.
Huntsman Corporation (HUN - Free Report) , expected to release earnings on Apr 28, has an Earnings ESP of +1.88% and carries a Zacks Rank #3.
The consensus estimate for Huntsman’s first-quarter earnings has been revised 4.2% upward over the past 60 days. The Zacks Consensus Estimate for HUN’s earnings for the quarter stands at $1.
The Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.89% and sports a Zacks Rank #1.
The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward in the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.
Image: Bigstock
Olin (OLN) to Report Q1 Earnings: What's in the Offing?
Olin Corporation (OLN - Free Report) is set to release first-quarter 2022 results after market close on Apr 28. The company’s productivity actions and the Lake City contract are likely to get reflected in its first-quarter numbers. However, Olin is likely to have faced headwinds stemming from higher raw material costs.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing the same once. It has a trailing four-quarter earnings surprise of roughly 10.8%, on average. The company reported a negative earnings surprise of 4.8% in the last reported quarter.
Olin’s shares have surged 31.8% in the past year against a 3.5% decline of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for Olin’s revenues in the to-be-reported quarter is pegged at $2,348 million, suggesting a year-over-year increase of 22.4%.
The consensus mark for net sales in the Chlor Alkali Products and the Vinyls unit is currently pegged at $1,180 million for the first quarter, calling for a 36.1% year-over-year increase.
The Zacks Consensus Estimate for the Winchester segment’s net sales is currently pegged at $397 million, suggesting a 2.1% rise from the year-ago quarter’s level. The same for the Epoxy division is pegged at $793 million, indicating a 19.6% year-over-year increase.
Factors at Play in Q1
The Lake City U.S. Army ammunition contract is likely to have aided the performance of the company’s Winchester business. The multi-year contract is expected to have contributed to sales and profitability in the first quarter.
Productivity actions are likely to have contributed to first-quarter performance. It is also expected to have benefited from higher pricing in the quarter.
The company is expected to have faced challenges from cost-related headwinds in raw materials. OLN is also likely to have been impacted by higher natural gas and electrical power costs in the quarter. Higher commodity costs are expected to have exerted pressure on the margins.
Olin is also likely to have witnessed softer epoxy resin demand in Europe in the first quarter, exacerbated by the invasion of Ukraine by Russia.
Zacks Model
Our proven model does not predict an earnings beat for Olin 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. But that’s not the case here.
Earnings ESP: Earnings ESP for Olin is -0.57%. The Zacks Consensus Estimate for first-quarter earnings is currently pegged at $2.33. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Olin currently carries a Zacks Rank #3.
Olin Corporation Price and EPS Surprise
Olin Corporation price-eps-surprise | Olin 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 these have the right combination of elements to post an earnings beat this quarter:
Ashland Global Holdings Inc. (ASH - Free Report) , scheduled to release earnings on Apr 26, has an Earnings ESP of +9.97% 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 Ashland's fiscal second-quarter earnings has been revised 14.3% upward in the past 60 days. The consensus estimate for ASH’s earnings for the quarter is currently pegged at $1.36.
Huntsman Corporation (HUN - Free Report) , expected to release earnings on Apr 28, has an Earnings ESP of +1.88% and carries a Zacks Rank #3.
The consensus estimate for Huntsman’s first-quarter earnings has been revised 4.2% upward over the past 60 days. The Zacks Consensus Estimate for HUN’s earnings for the quarter stands at $1.
The Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.89% and sports a Zacks Rank #1.
The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward in the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.