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's (OLN) Earnings and Revenues Miss Estimates in Q1
Read MoreHide Full Article
Olin Corporation (OLN - Free Report) posted a first-quarter 2023 profit of $156.3 million or $1.16 per share, down from $393 million or $2.48 per share in the year-ago quarter. Earnings per share missed the Zacks Consensus Estimate of $1.28.
The chemical maker’s revenues fell roughly 25.1% year over year to $1,844.3 million in the quarter. It missed the Zacks Consensus Estimate of $1,980.8 million. The top line in the reported quarter was hurt by lower volumes in its chemical businesses. The company witnessed lower sales across its segments in the quarter.
Olin Corporation Price, Consensus and EPS Surprise
Chlor Alkali Products and Vinyls: Revenues in the division fell roughly 10.3% year over year to $1,117.1 million in the reported quarter. The downside can be attributed to lower volumes, partly offset by higher pricing.
Epoxy: Revenues in the division went down around 54.3% year over year to $360.7 million on lower volumes.
Winchester: Revenues fell around 14.1% year over year to $366.5 million on lower commercial ammunition shipments, which was more than offset by higher military and law enforcement shipments.
Financials
Olin ended the quarter with cash and cash equivalents of $176 million, down 11% year over year. Long-term debt was $2,764.6 million at the end of the quarter, up around 7%.
The company repurchased roughly 3.6 million shares of common stock for $206.1 million during the first quarter.
Outlook
The company anticipates second-quarter 2023 results from its Chemical operations to be marginally lower than the first-quarter levels due to the persistently challenging global economic climate. OLN anticipates Winchester business' second-quarter 2023 performance to improve sequentially as commercial customer inventories become more normalized. Overall, it sees adjusted EBITDA for the second quarter of 2023 to be marginally lower than levels for the first quarter.
Price Performance
Shares of Olin are down 12.3% in the past year compared with a 5.6% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
OLN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Steel Dynamics, Inc. (STLD - Free Report) , Linde plc (LIN - Free Report) and PPG Industries, Inc. (PPG - Free Report)
Steel Dynamics currently carries a Zacks Rank #2 (Buy). Shares of STLD have gained 19.4% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 10.7% on average. You can see the complete list of today’s Zacks #1 Rank (Strong buy) stocks here.
Linde, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 9.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.97% upward in the past 60 days. It has a trailing four-quarter earnings surprise of 5.9%, on average. The stock has gained 17.9% over the past year.
PPG Industries currently carries a Zacks Rank #2 and has a projected earnings growth rate of 20.2% for the current year. Shares of PPG have gained 4.8% in the past year. It delivered a trailing four-quarter earnings surprise of 6.8% on average.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Olin's (OLN) Earnings and Revenues Miss Estimates in Q1
Olin Corporation (OLN - Free Report) posted a first-quarter 2023 profit of $156.3 million or $1.16 per share, down from $393 million or $2.48 per share in the year-ago quarter. Earnings per share missed the Zacks Consensus Estimate of $1.28.
The chemical maker’s revenues fell roughly 25.1% year over year to $1,844.3 million in the quarter. It missed the Zacks Consensus Estimate of $1,980.8 million. The top line in the reported quarter was hurt by lower volumes in its chemical businesses. The company witnessed lower sales across its segments in the quarter.
Olin Corporation Price, Consensus and EPS Surprise
Olin Corporation price-consensus-eps-surprise-chart | Olin Corporation Quote
Segment Review
Chlor Alkali Products and Vinyls: Revenues in the division fell roughly 10.3% year over year to $1,117.1 million in the reported quarter. The downside can be attributed to lower volumes, partly offset by higher pricing.
Epoxy: Revenues in the division went down around 54.3% year over year to $360.7 million on lower volumes.
Winchester: Revenues fell around 14.1% year over year to $366.5 million on lower commercial ammunition shipments, which was more than offset by higher military and law enforcement shipments.
Financials
Olin ended the quarter with cash and cash equivalents of $176 million, down 11% year over year. Long-term debt was $2,764.6 million at the end of the quarter, up around 7%.
The company repurchased roughly 3.6 million shares of common stock for $206.1 million during the first quarter.
Outlook
The company anticipates second-quarter 2023 results from its Chemical operations to be marginally lower than the first-quarter levels due to the persistently challenging global economic climate. OLN anticipates Winchester business' second-quarter 2023 performance to improve sequentially as commercial customer inventories become more normalized. Overall, it sees adjusted EBITDA for the second quarter of 2023 to be marginally lower than levels for the first quarter.
Price Performance
Shares of Olin are down 12.3% in the past year compared with a 5.6% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
OLN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Steel Dynamics, Inc. (STLD - Free Report) , Linde plc (LIN - Free Report) and PPG Industries, Inc. (PPG - Free Report)
Steel Dynamics currently carries a Zacks Rank #2 (Buy). Shares of STLD have gained 19.4% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 10.7% on average. You can see the complete list of today’s Zacks #1 Rank (Strong buy) stocks here.
Linde, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 9.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.97% upward in the past 60 days. It has a trailing four-quarter earnings surprise of 5.9%, on average. The stock has gained 17.9% over the past year.
PPG Industries currently carries a Zacks Rank #2 and has a projected earnings growth rate of 20.2% for the current year. Shares of PPG have gained 4.8% in the past year. It delivered a trailing four-quarter earnings surprise of 6.8% on average.