It has been about a month since the last earnings report for Huntsman (HUN Quick QuoteHUN - Free Report) . Shares have lost about 2.6% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Huntsman due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Huntsman's Earnings and Revenues Top Estimates in Q2

Huntsman 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.

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.

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.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -6.39% due to these changes.

VGM Scores

Currently, Huntsman has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Huntsman has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.