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LyondellBasell (LYB) Q3 Earnings and Sales Beat Estimates

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LyondellBasell Industries N.V. (LYB - Free Report) , which emerged from Chapter 11 bankruptcy in 2010, is among the leading plastics, chemical and refining companies globally. The company’s products are used across a bevy of industries including electronics, automotive parts, packaging, construction materials and biofuels. LyondellBasell is a leading producer of olefins and polyolefins globally.

LyondellBasell is executing its expansion projects to leverage the U.S. natural gas liquids (NGLs) advantage. It remains on track with its multi-plant ethylene expansion projects across its Channelview, La Porte and Corpus Christi facilities in Texas which benefit from shale gas production. Moreover, the company remains committed to increasing shareholder returns through dividends as well as a share repurchase program, by leveraging healthy cash flows.

Let’s have a quick look at this Netherlands-based chemical giant’s third-quarter 2016 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for LyondellBasell for the third quarter has seen an uptrend over the last 30 days. LyondellBasell has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average beat of 4.83%.

Earnings

LyondellBasell logged earnings of $2.31 per share for the third quarter that beat the Zacks Consensus Estimate by a penny.

Revenues

LyondellBasell recorded revenues of $7,365 million, down roughly 11.6% year over year. However, it beat the Zacks Consensus Estimate of $7,295 million.

LYONDELLBASEL-A Price and EPS Surprise

 

LYONDELLBASEL-A Price and EPS Surprise | LYONDELLBASEL-A Quote

Key Stats/Developments to Note

LyondellBasell saw significant contribution from the company’s European olefins and polyolefins business in the third quarter as well as the first nine months of 2016. This has particularly helped in the company’s overall performance as the North American olefins and polyolefins business results have been negatively impacted by a heavy planned maintenance schedule. Polyolefin demand remained strong in both regions.

In October also, the company has been witnessing favorable conditions for global olefin and polyolefin industry. A slowdown in certain business lines is expected in the fourth quarter due to seasonal changes. The fourth quarter also marks the conclusion of the period of planned maintenance and associated downtime in the olefin and polyolefin assets.

Zacks Rank

LyondellBasell currently has a Zacks Rank #2 (Buy).

Market Reaction

LyondellBasell’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on LyondellBasell’s earnings report!

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