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.
Chemical Stock Q4 Earnings Slated on Jan 26: DOW, EMN & OLN
Read MoreHide Full Article
A few prominent chemical companies are lined up to report their quarterly numbers tomorrow. Chemical companies are expected to have benefited from firm demand across several key end markets and strategic actions to mitigate input and other cost inflation in the fourth quarter.
Demand for both commodity and specialty chemicals has been healthy in key end-use markets. Chemical demand from the automotive market continues to hold up well, despite the semiconductor shortage, which affected automotive builds globally in 2022. Demand in packaging and healthcare remains strong. 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 spike in oil prices has led to an uptick in demand in the energy space. Healthy end-market demand is expected to have supported sales volumes and the top line of chemical companies in the December quarter.
However, the impacts of raw material cost inflation, and higher supply-chain and logistics costs are expected to reflect on chemical companies’ fourth-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 put further pressure on the global supply chain. Higher energy and gas prices, especially in Europe due to the war, have also pushed up the production costs of chemicals. The impacts of these headwinds are likely to reflect on the chemical companies’ performance in the fourth quarter.
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 decline 33.4% on 7.7% lower revenues, per the latest Earnings Trends report.
We take a look at three chemical companies that are gearing up to report their fourth-quarter results on Jan 26.
Dow Inc. (DOW - Free Report) will report results ahead of the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of -1.37% 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 fourth-quarter revenues for Dow is currently pegged at $11,787.4 million, suggesting a decline of 17.9% year over year. The consensus estimate for earnings is 57 cents.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.7%.
Dow is expected to have benefited from firm demand across a number of end markets, higher prices and its cost and productivity initiatives. However, raw material and energy cost inflation and softer demand in Europe are likely to have affected its performance. (Read more: Dow Gears Up for Q4 Earnings: What's in the Cards?)
Eastman Chemical Company (EMN - Free Report) will report earnings numbers 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 -7.31% and a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for revenues for the fourth quarter for Eastman Chemical is currently pinned at $2,295 million, which reflects a year-over-year decline of 14.8%. The consensus estimate for earnings is $1.26.
The company had surpassed Zacks Consensus Estimate for earnings in two of the last four quarters while missing twice. It has a trailing four-quarter earnings surprise of around 0.8% on average.
Eastman Chemical is expected to have benefitted from growing new business revenues in end markets resulting from its innovative-driven growth model. However, the company is expected to have faced headwinds from the weakening of the global economy, inventory de-stocking and strengthening of the U.S. dollar, in the fourth quarter. (Read more: Eastman Chemical to Report Q4 Earnings: What's in Store?)
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 -3.64% and a Zacks Rank #3.
The Zacks Consensus Estimate for OLN’s revenues for the fourth quarter is pegged at $2,025 million, which suggests a year-over-year decline of 16.7%. The consensus estimate for earnings is $1.42.
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 6.6%, on average.
The company’s productivity actions and higher chlorine and caustic soda pricing are likely to get reflected in its fourth-quarter numbers. However, Olin is likely to have faced headwinds stemming from higher raw material and commodity costs, increased Asian exports and holiday-related shutdowns.
Image: Bigstock
Chemical Stock Q4 Earnings Slated on Jan 26: DOW, EMN & OLN
A few prominent chemical companies are lined up to report their quarterly numbers tomorrow. Chemical companies are expected to have benefited from firm demand across several key end markets and strategic actions to mitigate input and other cost inflation in the fourth quarter.
Demand for both commodity and specialty chemicals has been healthy in key end-use markets. Chemical demand from the automotive market continues to hold up well, despite the semiconductor shortage, which affected automotive builds globally in 2022. Demand in packaging and healthcare remains strong. 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 spike in oil prices has led to an uptick in demand in the energy space. Healthy end-market demand is expected to have supported sales volumes and the top line of chemical companies in the December quarter.
However, the impacts of raw material cost inflation, and higher supply-chain and logistics costs are expected to reflect on chemical companies’ fourth-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 put further pressure on the global supply chain. Higher energy and gas prices, especially in Europe due to the war, have also pushed up the production costs of chemicals. The impacts of these headwinds are likely to reflect on the chemical companies’ performance in the fourth quarter.
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 decline 33.4% on 7.7% lower revenues, per the latest Earnings Trends report.
We take a look at three chemical companies that are gearing up to report their fourth-quarter results on Jan 26.
Dow Inc. (DOW - Free Report) will report results ahead of the bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of -1.37% 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 fourth-quarter revenues for Dow is currently pegged at $11,787.4 million, suggesting a decline of 17.9% year over year. The consensus estimate for earnings is 57 cents.
The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 8.7%.
Dow is expected to have benefited from firm demand across a number of end markets, higher prices and its cost and productivity initiatives. However, raw material and energy cost inflation and softer demand in Europe are likely to have affected its performance. (Read more: Dow Gears Up for Q4 Earnings: What's in the Cards?)
Dow Inc. Price and EPS Surprise
Dow Inc. price-eps-surprise | Dow Inc. Quote
Eastman Chemical Company (EMN - Free Report) will report earnings numbers 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 -7.31% and a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for revenues for the fourth quarter for Eastman Chemical is currently pinned at $2,295 million, which reflects a year-over-year decline of 14.8%. The consensus estimate for earnings is $1.26.
The company had surpassed Zacks Consensus Estimate for earnings in two of the last four quarters while missing twice. It has a trailing four-quarter earnings surprise of around 0.8% on average.
Eastman Chemical is expected to have benefitted from growing new business revenues in end markets resulting from its innovative-driven growth model. However, the company is expected to have faced headwinds from the weakening of the global economy, inventory de-stocking and strengthening of the U.S. dollar, in the fourth quarter. (Read more: Eastman Chemical to Report Q4 Earnings: What's in Store?)
Eastman Chemical Company Price and EPS Surprise
Eastman Chemical Company price-eps-surprise | Eastman Chemical Company 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 -3.64% and a Zacks Rank #3.
The Zacks Consensus Estimate for OLN’s revenues for the fourth quarter is pegged at $2,025 million, which suggests a year-over-year decline of 16.7%. The consensus estimate for earnings is $1.42.
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 6.6%, on average.
The company’s productivity actions and higher chlorine and caustic soda pricing are likely to get reflected in its fourth-quarter numbers. However, Olin is likely to have faced headwinds stemming from higher raw material and commodity costs, increased Asian exports and holiday-related shutdowns.
Olin Corporation Price and EPS Surprise
Olin Corporation price-eps-surprise | Olin Corporation Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.