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Huntsman (HUN) Up 3% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Huntsman (HUN - Free Report) . Shares have added about 3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Huntsman due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Huntsman's Q2 Earnings Beat Estimates, Revenues Miss
Huntsman logged a second-quarter 2024 net income of $22 million or 13 cents per share, up from a net income of $19 million or 11 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 14 cents in the reported quarter. The figure was higher than the Zacks Consensus Estimate of 12 cents.
Revenues amounted to $1,574 million, down around 1% year over year. The top line missed the Zacks Consensus Estimate of $1,619.9 million.
Segment Highlights
Polyurethanes: Revenues in the segment dropped 1% year over year, reaching $1,001 million in the said quarter. It was below our estimate of $1,074.2 million. The decline was primarily due to lower average selling prices of MDI, which were influenced by less favorable supply and demand dynamics. However, the impact was partially mitigated by higher sales volume owing to improved demand and market share gains in certain areas. Reduced MDI prices and lower equity earnings from a minority-owned joint venture in China mainly caused the downtick in the segment’s adjusted EBITDA. This was somewhat offset by reduced raw material costs and increased sales volumes.
Performance Products: Revenues in the segment fell 3% to $299 million, mainly due to a decline in average selling prices. It was below our estimate of $307.3 million. These lower prices were primarily a result of competitive pressures, particularly in Europe and the Americas. On the upside, sales volumes saw an increase, driven by improved industrial activity and heightened demand in the coatings, adhesives and lubricants markets. The decline in the segment’s adjusted EBITDA was largely due to the reduced average selling prices and higher fixed costs. This was partially offset by increased sales volumes and lower raw material costs.
Advanced Materials: Revenues in the segment dropped 2% to $279 million, primarily due to lower average selling prices. It was above our estimate of $266.3 million. The downside was caused by an unfavorable sales mix. Nonetheless, sales volume increased, particularly in the aerospace and infrastructure markets, driven by market recovery. The segment's adjusted EBITDA saw an increase, mainly due to favorable variable margins resulting from lower raw material costs, which were partially offset by higher fixed costs.
Financials
Huntsman ended the quarter with cash of $335 million, down 33% year over year. Long-term debt was $1,344 million, down 14% year over year.
In second-quarter 2024, net cash provided by operating activities from continuing operations was $55 million. Free cash flow from continuing operations was $5 million.
Outlook
In the second quarter of 2024, sales volumes saw a notable 9% year-over-year increase. The company anticipates favorable growth comparisons to continue in the second half of the year. However, it does not expect the global economic activity to change materially for the remainder of the third quarter.
Huntsman plans to maintain a focus on cost control, cash flow management and driving stronger sales volumes compared with 2023 levels, with higher overall utilization rates. With a robust balance sheet, the company is committed to a disciplined capital allocation strategy aimed at long-term strengthening of the business and returning cash to shareholders.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -33.6% due to these changes.
VGM Scores
Currently, Huntsman has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Huntsman has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Huntsman is part of the Zacks Chemical - Diversified industry. Over the past month, Eastman Chemical (EMN - Free Report) , a stock from the same industry, has gained 5.1%. The company reported its results for the quarter ended June 2024 more than a month ago.
Eastman Chemical reported revenues of $2.36 billion in the last reported quarter, representing a year-over-year change of +1.7%. EPS of $2.15 for the same period compares with $1.99 a year ago.
Eastman Chemical is expected to post earnings of $2.12 per share for the current quarter, representing a year-over-year change of +44.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.
Eastman Chemical has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Huntsman (HUN) Up 3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Huntsman (HUN - Free Report) . Shares have added about 3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Huntsman due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Huntsman's Q2 Earnings Beat Estimates, Revenues Miss
Huntsman logged a second-quarter 2024 net income of $22 million or 13 cents per share, up from a net income of $19 million or 11 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share came in at 14 cents in the reported quarter. The figure was higher than the Zacks Consensus Estimate of 12 cents.
Revenues amounted to $1,574 million, down around 1% year over year. The top line missed the Zacks Consensus Estimate of $1,619.9 million.
Segment Highlights
Polyurethanes: Revenues in the segment dropped 1% year over year, reaching $1,001 million in the said quarter. It was below our estimate of $1,074.2 million. The decline was primarily due to lower average selling prices of MDI, which were influenced by less favorable supply and demand dynamics. However, the impact was partially mitigated by higher sales volume owing to improved demand and market share gains in certain areas. Reduced MDI prices and lower equity earnings from a minority-owned joint venture in China mainly caused the downtick in the segment’s adjusted EBITDA. This was somewhat offset by reduced raw material costs and increased sales volumes.
Performance Products: Revenues in the segment fell 3% to $299 million, mainly due to a decline in average selling prices. It was below our estimate of $307.3 million. These lower prices were primarily a result of competitive pressures, particularly in Europe and the Americas. On the upside, sales volumes saw an increase, driven by improved industrial activity and heightened demand in the coatings, adhesives and lubricants markets. The decline in the segment’s adjusted EBITDA was largely due to the reduced average selling prices and higher fixed costs. This was partially offset by increased sales volumes and lower raw material costs.
Advanced Materials: Revenues in the segment dropped 2% to $279 million, primarily due to lower average selling prices. It was above our estimate of $266.3 million. The downside was caused by an unfavorable sales mix. Nonetheless, sales volume increased, particularly in the aerospace and infrastructure markets, driven by market recovery. The segment's adjusted EBITDA saw an increase, mainly due to favorable variable margins resulting from lower raw material costs, which were partially offset by higher fixed costs.
Financials
Huntsman ended the quarter with cash of $335 million, down 33% year over year. Long-term debt was $1,344 million, down 14% year over year.
In second-quarter 2024, net cash provided by operating activities from continuing operations was $55 million. Free cash flow from continuing operations was $5 million.
Outlook
In the second quarter of 2024, sales volumes saw a notable 9% year-over-year increase. The company anticipates favorable growth comparisons to continue in the second half of the year. However, it does not expect the global economic activity to change materially for the remainder of the third quarter.
Huntsman plans to maintain a focus on cost control, cash flow management and driving stronger sales volumes compared with 2023 levels, with higher overall utilization rates. With a robust balance sheet, the company is committed to a disciplined capital allocation strategy aimed at long-term strengthening of the business and returning cash to shareholders.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -33.6% due to these changes.
VGM Scores
Currently, Huntsman has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Huntsman has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Huntsman is part of the Zacks Chemical - Diversified industry. Over the past month, Eastman Chemical (EMN - Free Report) , a stock from the same industry, has gained 5.1%. The company reported its results for the quarter ended June 2024 more than a month ago.
Eastman Chemical reported revenues of $2.36 billion in the last reported quarter, representing a year-over-year change of +1.7%. EPS of $2.15 for the same period compares with $1.99 a year ago.
Eastman Chemical is expected to post earnings of $2.12 per share for the current quarter, representing a year-over-year change of +44.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.
Eastman Chemical has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.