Back to top

Image: Bigstock

Chemical Stocks Q2 Earnings on Aug 1: OLN, GRA, IPHS, TSE

Read MoreHide Full Article

A few chemical companies are scheduled to release their quarterly numbers on Aug 1. The chemical industry is clawing its way back after being roiled by the global economic crisis. The industry’s recovery momentum is expected to continue this year, supported by strong momentum in the automotive market and rebounding construction markets.

Chemical makers are also benefiting from strategic measures including expansion into high-growth markets, cost management and productivity improvement actions as well as acquisitions. However, the industry faces certain roadblocks including a still weak agriculture market, sluggish demand in the energy space due to depressed crude oil prices, a choppy Europe and slowdown in China.

As per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. Earnings for sector participants on the S&P 500 index that have unveiled their quarterly numbers thus far are down 3.8% from the same period last year while revenues are down 10.3%, per the latest Earnings Trends report.

The Growth picture looks tepid as the sector’s earnings are expected to drop 12.2% in the second quarter, considering the companies that are yet to report. Revenues for the sector are likely to fall 7.6%.

Among the chemical companies that have already come up with their quarterly numbers, we have seen solid earnings beats from chemical bellwethers DuPont (DD - Free Report) and Dow Chemical (DOW - Free Report) . Other prominent names such as PPG Industries (PPG - Free Report) , Air Products (APD - Free Report) and Celanese Corporation (CE - Free Report) have also come up with positive earnings surprises.

Let’s see what’s in store for these chemical makers that are set to report second-quarter numbers on Aug 1.

Olin Corp. (OLN - Free Report) will report after the close. It has an Earnings ESP of -29.17% as the Most Accurate estimate stands at a 17 cents and the Zacks Consensus Estimate is pegged at 24 cents.  The stock carries a favorable Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction difficult. Olin missed estimates in three of the last four quarters while it beat on one occasion.

OLIN CORP Price and EPS Surprise

OLIN CORP Price and EPS Surprise | OLIN CORP Quote

W.R. Grace & Co. will report ahead of the bell. It has an Earnings ESP of -2.90% as the Most Accurate estimate stands at 67 cents and the Zacks Consensus Estimate is pegged at 69 cents. The company also carries a Zacks Rank #4 (Sell), which we caution against ahead of earnings release. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 6.70%.

GRACE (WR) NEW Price and EPS Surprise

GRACE (WR) NEW Price and EPS Surprise | GRACE (WR) NEW Quote

Innophos Holdings Inc will report after the close. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 50 cents. The company carries a Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. Innophos missed estimates in three of the last four quarters while it beat once.

INNOPHOS HLDGS Price and EPS Surprise

INNOPHOS HLDGS Price and EPS Surprise | INNOPHOS HLDGS Quote

Trinseo SA (TSE - Free Report) will report after the bell. The company is expected to post a positive earnings surprise as it carries a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of +6.06%. Trinseo beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 2.22%.
 

TRINSEO SA Price and EPS Surprise

TRINSEO SA Price and EPS Surprise | TRINSEO SA Quote

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Published in