Westlake Chemical (WLK - Free Report) is a vertically integrated international producer and supplier of petrochemicals, polymers and fabricated products. The company's range of products includes ethylene, polyethylene, styrene, vinyl intermediates, PVC, PVC Pipe, PVC windows, fence and decking components.
Westlake Chemical is benefiting from healthy demand for olefins and vinyls products. Moreover, the Axiall Corp. acquisition is expected to deliver meaningful annual cost synergies.
Let’s have a quick look at the company’s second-quarter 2017 release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Westlake Chemical for the second quarter has been stable over the last month. The company has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters while missing once, with an average positive surprise of 24.11%.
Westlake Chemical’s adjusted earnings came in at $1.21 per share in the quarter, which topped the Zacks Consensus Estimate of $1.19.
Westlake Chemical reported net sales of $1,979.2 million, up around 82.2% year over year. Sales in the quarter benefited from higher sales contributed from Axiall and increased selling prices for major products. Revenues, however, trailed the Zacks Consensus Estimate of $2,083.6 million.
Key Developments to Note
Westlake Chemical’s second quarter results benefited from strong global demand of its key products and increasing prices in Vinyls segment. The company is making notable progress in integrating, improving activities and achieving the expected synergies associated with the acquisition of Axiall business.
Currently, Westlake Chemical has a Zacks Rank #2 (Buy), but that could change following its earnings report which was just released.
Westlake Chemical’s shares were down about 0.5% in pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.
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