A couple of chemical companies are lined up to report their quarterly results on Nov 14. As per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. Based on the earnings scorecard as of Nov 9, earnings for the sector participants on the S&P 500 index that have already reported have increased 4.7% from the same period last year while revenues are down 3%. Overall earnings for the sector are expected to rise 4.7% on 3.6% lower sales, per the latest Earnings Outlook.
The chemical industry remains on the road to recovery, aided by healthy momentum across the automotive and construction markets. Chemical makers are gaining from strategic measures including expansion into high-growth markets, aggressive cost management, acquisitions and investments in capacity expansion.
However, the industry still faces a number of challenges including depressed demand in the agricultural and energy markets, a sluggish Chinese economy and headwinds from a strong dollar.
Let’s take a look at two chemical companies that are gearing up to report their third-quarter results on Nov 14.
Ferroglobe PLC (GSM - Free Report) , which will report before the bell, has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of a penny. Since this results in an Earnings ESP of 0.00%, surprise prediction becomes difficult in spite of the company’s Zacks Rank #2 (Buy). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Ferroglobe missed estimates in three of the trailing four quarters with an average negative surprise of 88.23%.
Marrone Bio Innovations, Inc. (MBII - Free Report) will report after the bell. The company’s Earnings ESP of 0.00% makes it difficult to predict an earnings beat although it has a favorable Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The company missed estimates in three of the trailing four quarters with an average negative surprise of 26.84%.
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