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Chemical Stocks' Q2 Earnings to Watch on Aug 8: IFF, PAH, CC
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The second-quarter earnings season is in its last leg with 414 companies on the S&P 500 index having already reported. Earnings for these companies are down 4.5% while revenues have declined 1%, as per the latest Earnings Outlook report. The decline, however, has shown a moderation when compared with the previous quarter.
Considering the actual results from the S&P 500 members that have reported thus far, total Q2 earnings are expected to skid 3.1% year over year on 0.4% lower revenues with the Energy sector being a major drag.
In this write-up, we put the spotlight on a few chemical companies that are scheduled to report their quarterly results on Aug 8. The chemical industry remains on a slow road to recovery amid a still-fragile macro environment. Chemical makers are gaining from strategic measures including expansion into high-growth markets, aggressive cost management and productivity actions as well as acquisitions. However, the industry remains hamstrung by a number of headwinds including a still weak agriculture market, currency headwinds, weak demand in the energy space, Eurozone’s feeble recovery and a sluggish Chinese economy.
As per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. Based on the earnings scorecard as of Aug 4, 95% of the sector participants on the S&P 500 index have unveiled their quarterly numbers. Earnings for these companies are down 11.8% from the same period last year on 9.1% lower revenues.
Basic Materials is among the sectors that are expected to see double-digit year-over-year earnings decline in the second-quarter. The sector’s earnings are expected to drop 11.7% in the quarter, considering the companies that are yet to report. Revenues for the sector are likely to fall 7.6%.
We take a sneak peek into three chemical companies that are gearing up to report second-quarter results on Aug 8.
International Flavors & Fragrances Inc. (IFF - Free Report) is expected to come up with a positive earnings surprise as it carries a Zacks Rank #2 (Buy) and an Earnings ESP of +0.71%. In the four trailing quarters, the company posted better-than-expected earnings results in three while lagged in one. International Flavors & Fragrances is well positioned to benefit from growing demand for flavors and fragrances, especially in the emerging countries. (Read more: Can International Flavors Surprise in Q2 Earnings?)
Platform Specialty Products Corporation has an Earnings ESP of -16.67% as the Most Accurate estimate stands at 15 cents while the Zacks Consensus Estimate is pegged at 18 cents. The company carries a favorable Zacks Rank #3 (Hold), but its negative ESP makes surprise prediction difficult. The company delivered an average negative earnings surprise of 18.27% over the trailing four quarters.
The Chemours Company (CC - Free Report) has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 13 cents. The stock holds a Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. Chemours beat estimates in two of the trailing four quarters while missed in the other two.
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Chemical Stocks' Q2 Earnings to Watch on Aug 8: IFF, PAH, CC
The second-quarter earnings season is in its last leg with 414 companies on the S&P 500 index having already reported. Earnings for these companies are down 4.5% while revenues have declined 1%, as per the latest Earnings Outlook report. The decline, however, has shown a moderation when compared with the previous quarter.
Considering the actual results from the S&P 500 members that have reported thus far, total Q2 earnings are expected to skid 3.1% year over year on 0.4% lower revenues with the Energy sector being a major drag.
In this write-up, we put the spotlight on a few chemical companies that are scheduled to report their quarterly results on Aug 8. The chemical industry remains on a slow road to recovery amid a still-fragile macro environment. Chemical makers are gaining from strategic measures including expansion into high-growth markets, aggressive cost management and productivity actions as well as acquisitions. However, the industry remains hamstrung by a number of headwinds including a still weak agriculture market, currency headwinds, weak demand in the energy space, Eurozone’s feeble recovery and a sluggish Chinese economy.
As per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. Based on the earnings scorecard as of Aug 4, 95% of the sector participants on the S&P 500 index have unveiled their quarterly numbers. Earnings for these companies are down 11.8% from the same period last year on 9.1% lower revenues.
Basic Materials is among the sectors that are expected to see double-digit year-over-year earnings decline in the second-quarter. The sector’s earnings are expected to drop 11.7% in the quarter, considering the companies that are yet to report. Revenues for the sector are likely to fall 7.6%.
We take a sneak peek into three chemical companies that are gearing up to report second-quarter results on Aug 8.
International Flavors & Fragrances Inc. (IFF - Free Report) is expected to come up with a positive earnings surprise as it carries a Zacks Rank #2 (Buy) and an Earnings ESP of +0.71%. In the four trailing quarters, the company posted better-than-expected earnings results in three while lagged in one. International Flavors & Fragrances is well positioned to benefit from growing demand for flavors and fragrances, especially in the emerging countries. (Read more: Can International Flavors Surprise in Q2 Earnings?)
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Platform Specialty Products Corporation has an Earnings ESP of -16.67% as the Most Accurate estimate stands at 15 cents while the Zacks Consensus Estimate is pegged at 18 cents. The company carries a favorable Zacks Rank #3 (Hold), but its negative ESP makes surprise prediction difficult. The company delivered an average negative earnings surprise of 18.27% over the trailing four quarters.
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The Chemours Company (CC - Free Report) has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 13 cents. The stock holds a Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. Chemours beat estimates in two of the trailing four quarters while missed in the other two.
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