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Huntsman's (HUN) Earnings and Revenues Top Estimates in Q2
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Huntsman Corporation (HUN - Free Report) recorded profits of $242 million or $1.10 per share in the second quarter of 2022, rising from $172 million or 70 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share rose to $1.28 in the reported quarter from 86 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of $1.14.
Revenues were $2,362 million, up around 17% year over year. The top line beat the Zacks Consensus Estimate of $2,323.1 million. Huntsman benefited from improved pricing, cost-control actions and its volume strategy in the reported quarter.
Huntsman Corporation Price, Consensus and EPS Surprise
Polyurethanes: Revenues from the segment rose 17% year over year to $1,353 million in the reported quarter owing to higher MDI (methylene diphenyl diisocyanate) average selling prices in all regions. This was partly offset by reduced sales volumes, hurt by pandemic-led lockdowns in China.
Performance Products: Revenues climbed 33% to $492 million courtesy of higher average selling prices led by strong demand on commercial excellence programs and higher raw-material costs. Volumes fell due to a shift in product mix based on demand and business strategy.
Advanced Materials: Revenues from the unit rose 12% to $336 million on higher average selling prices, partly offset by lower sales volumes. Average selling prices rose in response to higher raw-material, energy and logistics costs, and improved mix.
Textile Effects: Revenues from the division fell 7% to $192 million. The downside is attributed to reduced sales volumes which more than offset higher average selling prices.
Financials
Huntsman had total cash of $608 million at the end of the quarter, increasing 19% year over year. Long-term debt amounted to $1,508 million, down 0.9% from the year-ago quarter.
Net cash provided by operating activities from continuing operations was $231 million for the reported quarter. Free cash flow from continuing operations was $162 million compared with an outflow of $83 million in year-ago quarter.
The company repurchased around 8.4 million shares for around $291 million in the reported quarter.
Outlook
Huntsman said that its focus on cost control, downstream businesses and returning capital to shareholders will remain unchanged regardless of any macro headwinds that may impact the chemical industry in the quarters ahead. Its balance sheet and cash generation places it in an enviable position to take advantage of opportunities to invest in core businesses, the company noted.
Price Performance
Shares of Huntsman have increased 13.1% in the past year against a 9.4% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Huntsman currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and ATI Inc. (ATI - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 37% over a year.
Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 57.8% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained roughly 92% in a year. The company sports a Zacks Rank #1.
ATI, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 42% in a year.
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Huntsman's (HUN) Earnings and Revenues Top Estimates in Q2
Huntsman Corporation (HUN - Free Report) recorded profits of $242 million or $1.10 per share in the second quarter of 2022, rising from $172 million or 70 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share rose to $1.28 in the reported quarter from 86 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of $1.14.
Revenues were $2,362 million, up around 17% year over year. The top line beat the Zacks Consensus Estimate of $2,323.1 million. Huntsman benefited from improved pricing, cost-control actions and its volume strategy in the reported quarter.
Huntsman Corporation Price, Consensus and EPS Surprise
Huntsman Corporation price-consensus-eps-surprise-chart | Huntsman Corporation Quote
Segment Highlights
Polyurethanes: Revenues from the segment rose 17% year over year to $1,353 million in the reported quarter owing to higher MDI (methylene diphenyl diisocyanate) average selling prices in all regions. This was partly offset by reduced sales volumes, hurt by pandemic-led lockdowns in China.
Performance Products: Revenues climbed 33% to $492 million courtesy of higher average selling prices led by strong demand on commercial excellence programs and higher raw-material costs. Volumes fell due to a shift in product mix based on demand and business strategy.
Advanced Materials: Revenues from the unit rose 12% to $336 million on higher average selling prices, partly offset by lower sales volumes. Average selling prices rose in response to higher raw-material, energy and logistics costs, and improved mix.
Textile Effects: Revenues from the division fell 7% to $192 million. The downside is attributed to reduced sales volumes which more than offset higher average selling prices.
Financials
Huntsman had total cash of $608 million at the end of the quarter, increasing 19% year over year. Long-term debt amounted to $1,508 million, down 0.9% from the year-ago quarter.
Net cash provided by operating activities from continuing operations was $231 million for the reported quarter. Free cash flow from continuing operations was $162 million compared with an outflow of $83 million in year-ago quarter.
The company repurchased around 8.4 million shares for around $291 million in the reported quarter.
Outlook
Huntsman said that its focus on cost control, downstream businesses and returning capital to shareholders will remain unchanged regardless of any macro headwinds that may impact the chemical industry in the quarters ahead. Its balance sheet and cash generation places it in an enviable position to take advantage of opportunities to invest in core businesses, the company noted.
Price Performance
Shares of Huntsman have increased 13.1% in the past year against a 9.4% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Huntsman currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and ATI Inc. (ATI - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 37% over a year.
Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 57.8% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained roughly 92% in a year. The company sports a Zacks Rank #1.
ATI, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 42% in a year.