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Chemical Stock Q1 Earnings Slated on Apr 28: EMN, CE, HUN & OLN

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A few prominent chemical companies are lined up to report their quarterly numbers tomorrow. A rebound in end-market demand from pandemic-led lows is likely to have aided the performance of chemical companies in the first quarter.

Chemical makers are witnessing a recovery in demand in the key end-use markets, including automotive, building & construction and electronics, from the coronavirus-led downturn. Demand from the automotive market remains healthy, despite the semiconductor shortage, which continues to affect automotive builds globally. Demand in construction, packaging and healthcare also remains strong. In particular, strength is being witnessed in residential construction globally.

The companies in this space are also seeing a recovery in demand across the aerospace and energy markets. A recovery in drilling activities on the back of a surge in oil prices has led to an uptick in demand in the energy space. Healthy end-market demand is expected to have boosted sales volumes and the top line of chemical companies in the first quarter.

However, the impacts of raw material cost inflation, and higher supply chain and logistics costs are expected to reflect on chemical companies’ first-quarter results. Supply chain disruptions have led to a spike in raw material costs. The Russia-Ukraine conflict and new lockdowns in China following a resurgence in COVID-19 infections have exacerbated pressure on the already strained global supply chain. The impacts of supply chain and logistics constrains are likely to reflect on chemical companies’ first-quarter results.

Nevertheless, the benefits of self-help actions, including actions to raise the selling prices of chemical products to counter the cost inflation and tightness in the supply chain, productivity improvement measures and operational efficiency improvement, might reflect on the results of the companies in this space.

Per the Zacks industry classification, the chemical industry falls under the broader Basic Materials sector. Overall earnings for the sector are projected to rise 42.8% on 22.1% higher revenues, per the latest Earnings Trends report. The projected growth, however, reflects a slowdown from an 82.4% rise in earnings on a 31.3% increase in revenues that was witnessed in the fourth quarter of 2021.

We take a look at four chemical companies that are gearing up to report their first-quarter results on Apr 28.

Eastman Chemical Company (EMN - Free Report) will report earnings numbers after the closing bell. Our proven model predicts an earnings beat for the company. This is because it has an Earnings ESP of +0.15% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Zacks Consensus Estimate for revenues for the first quarter for Eastman Chemical is currently pinned at $2,480 million, suggesting an expected year-over-year rise of 2.9%. The consensus estimate for earnings is $2.07.

Eastman Chemical beat the Zacks Consensus Estimate for earnings in two of the last four quarters while missed twice. EMN has a trailing-four quarter earnings surprise of 1.6%, on average.

Benefits of cost and productivity actions and innovation are likely to get reflected in the company’s first-quarter performance. However, EMN is likely to have faced challenges associated with supply-chain issues and higher raw material costs in the quarter. (Read more: Eastman Chemical to Post Q1 Earnings: Factors at Play)

 

Eastman Chemical Company Price and EPS Surprise

 

Eastman Chemical Company Price and EPS Surprise

Eastman Chemical Company price-eps-surprise | Eastman Chemical Company Quote



Celanese Corporation (CE - Free Report) will report results after the closing bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of -0.33% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for first-quarter revenues for CE is currently pegged at $2,272 million, suggesting a 26.4% rise year over year. The consensus estimate for earnings is $4.49.

Celanese 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 6.6%, on average.

The company is likely to have gained from productivity actions, investments in high-return organic projects and strategic acquisitions. However, CE is expected to have faced headwinds stemming from higher input costs and a moderation in Acetyl Chain pricing. (Read more: Celanese to Report Q1 Earnings: What's in the Offing?)

 

Celanese Corporation Price and EPS Surprise

 

Celanese Corporation Price and EPS Surprise

Celanese Corporation price-eps-surprise | Celanese Corporation Quote



Huntsman Corporation (HUN - Free Report) will report results before the bell. Our proven model predicts an earnings beat for the company. This is because it has an Earnings ESP of +1.88% and a Zacks Rank #3.

The Zacks Consensus Estimate for first-quarter revenues for HUN is currently pegged at $2,338 million, suggesting a 27.3% rise year over year. The consensus estimate for earnings is $1.00.

Huntsman beat the Zacks Consensus Estimate for earnings in all of the last four quarters. HUN has a trailing-four quarter earnings surprise of 10.8%, on average.

The company’s earnings are likely to have benefited from healthy demand and prices for methylene diphenyl diisocyanate and acquisitions. However, Huntsman is likely to have faced headwinds from higher raw material and logistics costs. (Read more: Huntsman to Report Q1 Earnings: What's in the Cards?)

 

Huntsman Corporation Price and EPS Surprise

 

Huntsman Corporation Price and EPS Surprise

Huntsman Corporation price-eps-surprise | Huntsman Corporation Quote



Olin Corporation (OLN - Free Report) will come up with its quarterly results after the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of -0.57% and a Zacks Rank #3.

The Zacks Consensus Estimate for OLN’s revenues for the first quarter is pegged at $2,348 million, which suggests a year-over-year increase of 22.3%. The consensus estimate for earnings is $2.33.

Olin’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missed the same once. It has a trailing four-quarter earnings surprise of roughly 10.8%, on average.

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. (Read more: Olin to Report Q1 Earnings: What's in the Offing?)

 

Olin Corporation Price and EPS Surprise

 

Olin Corporation Price and EPS Surprise

Olin Corporation price-eps-surprise | Olin Corporation Quote



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