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Chemical Stocks Q2 Earnings on Aug 2: FMC, ECL, IOSP, AVD
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A few chemical companies are lined up to unveil their quarterly numbers on Aug 2. As per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. The sector is one among the eight out of the 16 Zacks sectors that are expected to post negative earnings growth in the second quarter with an expected year-over-year earnings decline of 10.6% on 7.6% lower sales, per the latest Earnings Preview report.
Based on the earnings scorecard as of Jul 29, 65% of the sector participants on the S&P 500 index have unveiled their quarterly numbers. Earnings for these companies are down 5.9% from the same period last year on 10.1% lower revenues.
The chemical industry is still on a gradual recovery mode from the trough of the great recession. The industry’s recovery is expected to continue this year, supported by continued strength in the automotive market, positive trends in the construction space and significant shale-linked capital investment.
Chemical makers are gaining from strategic measures including aggressive cost management and productivity actions, expansion into high-growth markets and acquisitions. However, the industry remains buffeted by a number of challenges including still a weak agriculture market, currency headwinds, weak demand in the energy space, Eurozone’s tepid recovery and a sluggish Chinese economy.
Among the chemical companies that have already come up with their quarterly numbers, we have seen solid earnings beats from chemical heavyweights such as DuPont (DD - Free Report) and Dow Chemical (DOW - Free Report) and positive surprises from other prominent names such as PPG Industries (PPG - Free Report) , Air Products (APD - Free Report) and Celanese Corporation (CE - Free Report) .
Let’s see what’s in store for these chemical companies that are set to report second-quarter numbers on Aug 2.
FMC Corp. (FMC - Free Report) will report after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 67 cents. The company carries a Zacks Rank #2 (Buy), but its 0.00% ESP makes surprise prediction difficult.
FMC Corp. is gaining from strategic investments, the Cheminova A/S acquisition and product launches. In its lithium business, the company is seeing strong demand across specialty end markets. The company is also reducing corporate costs through reduced discretionary spending, global procurement initiatives and layoffs. However, the company remains exposed to weak agriculture market conditions and currency headwinds. (Read more: Will FMC Corp Beat on Q2 Earnings Amid Headwinds?)
Ecolab Inc. (ECL - Free Report) , which will report ahead of the bell, has an Earnings ESP of +1.85% as the Most Accurate estimate stands at $1.10 and the Zacks Consensus Estimate is pegged at $1.08. However, the company carries a Zacks Rank #4 (Sell), which we caution against ahead of the earnings release. Ecolab posted a negative earnings surprise of 0.07% on average over the last four quarters.
While the company is exposed to headwinds such as unfavorable currency translation and Venezuela deconsolidation, a robust product portfolio, product launches and an expanding customer base should drive organic sales. (Read more: Can Ecolab Spring an Earnings Surprise in Q2?)
Innospec Inc. (IOSP - Free Report) 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 95 cents. The company carries a Zacks Rank #3 (Hold), but its 0.00% ESP makes surprise prediction difficult. Innospec surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 16.25%.INNOSPEC INC Price and EPS Surprise
American Vanguard Corp. (AVD - Free Report) will report after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 9 cents. The stock holds a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult. American Vanguard beat estimates in three of last four quarters while it missed on one occasion.
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Chemical Stocks Q2 Earnings on Aug 2: FMC, ECL, IOSP, AVD
A few chemical companies are lined up to unveil their quarterly numbers on Aug 2. As per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. The sector is one among the eight out of the 16 Zacks sectors that are expected to post negative earnings growth in the second quarter with an expected year-over-year earnings decline of 10.6% on 7.6% lower sales, per the latest Earnings Preview report.
Based on the earnings scorecard as of Jul 29, 65% of the sector participants on the S&P 500 index have unveiled their quarterly numbers. Earnings for these companies are down 5.9% from the same period last year on 10.1% lower revenues.
The chemical industry is still on a gradual recovery mode from the trough of the great recession. The industry’s recovery is expected to continue this year, supported by continued strength in the automotive market, positive trends in the construction space and significant shale-linked capital investment.
Chemical makers are gaining from strategic measures including aggressive cost management and productivity actions, expansion into high-growth markets and acquisitions. However, the industry remains buffeted by a number of challenges including still a weak agriculture market, currency headwinds, weak demand in the energy space, Eurozone’s tepid recovery and a sluggish Chinese economy.
Among the chemical companies that have already come up with their quarterly numbers, we have seen solid earnings beats from chemical heavyweights such as DuPont (DD - Free Report) and Dow Chemical (DOW - Free Report) and positive surprises from other prominent names such as PPG Industries (PPG - Free Report) , Air Products (APD - Free Report) and Celanese Corporation (CE - Free Report) .
Let’s see what’s in store for these chemical companies that are set to report second-quarter numbers on Aug 2.
FMC Corp. (FMC - Free Report) will report after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 67 cents. The company carries a Zacks Rank #2 (Buy), but its 0.00% ESP makes surprise prediction difficult.
FMC Corp. is gaining from strategic investments, the Cheminova A/S acquisition and product launches. In its lithium business, the company is seeing strong demand across specialty end markets. The company is also reducing corporate costs through reduced discretionary spending, global procurement initiatives and layoffs. However, the company remains exposed to weak agriculture market conditions and currency headwinds. (Read more: Will FMC Corp Beat on Q2 Earnings Amid Headwinds?)
FMC CORP Price and EPS Surprise
FMC CORP Price and EPS Surprise | FMC CORP Quote
Ecolab Inc. (ECL - Free Report) , which will report ahead of the bell, has an Earnings ESP of +1.85% as the Most Accurate estimate stands at $1.10 and the Zacks Consensus Estimate is pegged at $1.08. However, the company carries a Zacks Rank #4 (Sell), which we caution against ahead of the earnings release. Ecolab posted a negative earnings surprise of 0.07% on average over the last four quarters.
While the company is exposed to headwinds such as unfavorable currency translation and Venezuela deconsolidation, a robust product portfolio, product launches and an expanding customer base should drive organic sales. (Read more: Can Ecolab Spring an Earnings Surprise in Q2?)
ECOLAB INC Price and EPS Surprise
ECOLAB INC Price and EPS Surprise | ECOLAB INC Quote
Innospec Inc. (IOSP - Free Report) 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 95 cents. The company carries a Zacks Rank #3 (Hold), but its 0.00% ESP makes surprise prediction difficult. Innospec surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average beat of 16.25%.INNOSPEC INC Price and EPS Surprise
INNOSPEC INC Price and EPS Surprise | INNOSPEC INC Quote
American Vanguard Corp. (AVD - Free Report) will report after the bell. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 9 cents. The stock holds a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult. American Vanguard beat estimates in three of last four quarters while it missed on one occasion.
AMER VANGUARD Price and EPS Surprise
AMER VANGUARD Price and EPS Surprise | AMER VANGUARD Quote
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