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Chemical Stock Q1 Earnings Due on May 3: DWDP, WLK, CC & PAH
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A host of chemical companies are lined up to report their quarterly numbers this Thursday. The chemical industry is gaining strength on the back of continued demand strength across major end-use markets such as construction and automotive and an upswing in the world economy.
Improving fundamentals in the energy space — another key market for chemicals — have also acted as significant tailwinds to the chemical industry. A rebound in crude oil prices has led to a recovery in demand for chemicals in the energy market and a favorable pricing environment for chemical products.
Notwithstanding a few challenges including raw material cost inflation, chemical companies are expected to continue the earnings momentum in the March quarter as the fundamental driving factors remain firmly in place.
Strategic measures, including productivity improvement, pricing actions and portfolio restructuring, are expected to continue to drive the performance of chemical makers in Q1. Cost-cutting measures by chemical companies should continue to yield industry-wide margin improvements. Synergies from acquisitions should also lend support to earnings. Moreover, President Donald Trump’s business-friendly tax reform is a positive for U.S. chemical stocks.
Per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector, which is among the Zacks sectors that are expected to score the strongest gains in Q1. Earnings for the sector are projected to surge 42.1% in Q1 while revenues are expected to move up 21%, per the latest Earnings Preview.
We take a look at four chemical companies that are gearing up to report their Q1 results tomorrow.
DowDuPont Inc. will report its earnings numbers ahead of the bell. The company has an Earnings ESP of +2.91% as the Most Accurate estimate stands at $1.11 while the Zacks Consensus Estimate is pegged at $1.08. The company currently carries a favorable Zacks Rank #3 (Hold), which coupled with a positive ESP makes us confident of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
DowDuPont was formed through the $130-billion mega-merger of chemical giants, The Dow Chemical Company and E.I. du Pont de Nemours & Company (DuPont), completed on Aug 31, 2017.
The company delivered a positive earnings surprise of 23.9% in the last reported quarter.
The Zacks Consensus Estimate for revenues for DowDuPont for Q1 stands at $21,320 million, reflecting an expected 61.2% growth from the comparable period a year ago.
While raw material cost inflation poses as a headwind, DowDuPont is expected to continue to gain from higher volumes, strong demand, cost synergies, higher pricing across most of its businesses and favorable currency swings in Q1. (Read more: DowDuPont Q1 Earnings: Is a Beat in the Cards?)
Westlake Chemical Corporation (WLK - Free Report) will report its results before the bell. The company is expected to come up with a positive surprise as it has an Earnings ESP of +1.18% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Westlake Chemical surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missed once, delivering an average positive surprise of 18.4%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $2,101 million, reflecting an expected increase of 8.1% from the year-ago quarter.
Sales for the company’s Olefins segment for Q1 is projected to increase 3.1% sequentially, as the Zacks Consensus Estimate is currently pegged at $533 million. The same for the Vinyls segment is expected to increase 5.2% sequentially as the Zacks Consensus Estimate is currently pegged at $1,570 million.
Westlake Chemical is expected to gain from contributions of the Axiall acquisition and higher global demand for all major products in both Vinyls and Olefins segments. (Read more: Westlake Chemical's Q1 Earnings: Is a Beat Likely?)
Westlake Chemical Corporation Price and EPS Surprise
The Chemours Company (CC - Free Report) will report its results after the bell. The company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.23. While the stock currently carries a Zacks Rank #2 (Buy), its ESP makes surprise prediction difficult.
Chemours surpassed the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average beat of 21.5%.
Revenues for Q1 are projected to increase 16.7% year over year, as the Zacks Consensus Estimate is currently $1,678 million.
The company, in March, said that it now expects adjusted earnings per share for 2018 at the top end of its earlier projected range of $4.95-$5.60. The company should benefit from strong demand across Fluoroproducts and Titanium Technologies segments. It is witnessing solid demand for Ti-Pure titanium dioxide and a more favorable demand and pricing environment for its Fluoroproducts unit. Chemours should also gain from efforts to reduce costs and optimize its business portfolio.
Platform Specialty Products Corporation will report its results ahead of the bell. The stock has an Earnings ESP -6.90% as the Most Accurate estimate stands at 18 cents while the Zacks Consensus Estimate is pegged at 19 cents. It has a Zacks Rank #4 (Sell), which we caution against going into the earnings announcement.
The company posted better-than-expected results in two of the last four quarters, missed once and delivered in-line results on the other occasion. The average earnings surprise was a positive 9.7%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $899.3 million, reflecting an increase of 4.4% from the year-ago quarter.
The Zacks Consensus Estimate for the company’s Agricultural Solutions unit’s sales is pegged at $433 million, reflecting an increase of 4.3% on a year-over-year basis. The same for the Performance Solutions division stands at $469 million, representing year-over-year growth of 4.9%.
While the company faces challenges from raw material price inflation, it is likely to gain from cost-reduction initiatives, an expected improvement in product mix, new product launches and healthy demand conditions across the end markets in the Performance Solutions unit.
Platform Specialty Products Corporation Price and EPS Surprise
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Chemical Stock Q1 Earnings Due on May 3: DWDP, WLK, CC & PAH
A host of chemical companies are lined up to report their quarterly numbers this Thursday. The chemical industry is gaining strength on the back of continued demand strength across major end-use markets such as construction and automotive and an upswing in the world economy.
Improving fundamentals in the energy space — another key market for chemicals — have also acted as significant tailwinds to the chemical industry. A rebound in crude oil prices has led to a recovery in demand for chemicals in the energy market and a favorable pricing environment for chemical products.
Notwithstanding a few challenges including raw material cost inflation, chemical companies are expected to continue the earnings momentum in the March quarter as the fundamental driving factors remain firmly in place.
Strategic measures, including productivity improvement, pricing actions and portfolio restructuring, are expected to continue to drive the performance of chemical makers in Q1. Cost-cutting measures by chemical companies should continue to yield industry-wide margin improvements. Synergies from acquisitions should also lend support to earnings. Moreover, President Donald Trump’s business-friendly tax reform is a positive for U.S. chemical stocks.
Per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector, which is among the Zacks sectors that are expected to score the strongest gains in Q1. Earnings for the sector are projected to surge 42.1% in Q1 while revenues are expected to move up 21%, per the latest Earnings Preview.
We take a look at four chemical companies that are gearing up to report their Q1 results tomorrow.
DowDuPont Inc. will report its earnings numbers ahead of the bell. The company has an Earnings ESP of +2.91% as the Most Accurate estimate stands at $1.11 while the Zacks Consensus Estimate is pegged at $1.08. The company currently carries a favorable Zacks Rank #3 (Hold), which coupled with a positive ESP makes us confident of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
DowDuPont was formed through the $130-billion mega-merger of chemical giants, The Dow Chemical Company and E.I. du Pont de Nemours & Company (DuPont), completed on Aug 31, 2017.
The company delivered a positive earnings surprise of 23.9% in the last reported quarter.
The Zacks Consensus Estimate for revenues for DowDuPont for Q1 stands at $21,320 million, reflecting an expected 61.2% growth from the comparable period a year ago.
While raw material cost inflation poses as a headwind, DowDuPont is expected to continue to gain from higher volumes, strong demand, cost synergies, higher pricing across most of its businesses and favorable currency swings in Q1. (Read more: DowDuPont Q1 Earnings: Is a Beat in the Cards?)
Westlake Chemical Corporation (WLK - Free Report) will report its results before the bell. The company is expected to come up with a positive surprise as it has an Earnings ESP of +1.18% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Westlake Chemical surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missed once, delivering an average positive surprise of 18.4%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $2,101 million, reflecting an expected increase of 8.1% from the year-ago quarter.
Sales for the company’s Olefins segment for Q1 is projected to increase 3.1% sequentially, as the Zacks Consensus Estimate is currently pegged at $533 million. The same for the Vinyls segment is expected to increase 5.2% sequentially as the Zacks Consensus Estimate is currently pegged at $1,570 million.
Westlake Chemical is expected to gain from contributions of the Axiall acquisition and higher global demand for all major products in both Vinyls and Olefins segments. (Read more: Westlake Chemical's Q1 Earnings: Is a Beat Likely?)
Westlake Chemical Corporation Price and EPS Surprise
Westlake Chemical Corporation Price and EPS Surprise | Westlake Chemical Corporation Quote
The Chemours Company (CC - Free Report) will report its results after the bell. The company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.23. While the stock currently carries a Zacks Rank #2 (Buy), its ESP makes surprise prediction difficult.
Chemours surpassed the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average beat of 21.5%.
Revenues for Q1 are projected to increase 16.7% year over year, as the Zacks Consensus Estimate is currently $1,678 million.
The company, in March, said that it now expects adjusted earnings per share for 2018 at the top end of its earlier projected range of $4.95-$5.60. The company should benefit from strong demand across Fluoroproducts and Titanium Technologies segments. It is witnessing solid demand for Ti-Pure titanium dioxide and a more favorable demand and pricing environment for its Fluoroproducts unit. Chemours should also gain from efforts to reduce costs and optimize its business portfolio.
Chemours Company (The) Price and EPS Surprise
Chemours Company (The) Price and EPS Surprise | Chemours Company (The) Quote
Platform Specialty Products Corporation will report its results ahead of the bell. The stock has an Earnings ESP -6.90% as the Most Accurate estimate stands at 18 cents while the Zacks Consensus Estimate is pegged at 19 cents. It has a Zacks Rank #4 (Sell), which we caution against going into the earnings announcement.
The company posted better-than-expected results in two of the last four quarters, missed once and delivered in-line results on the other occasion. The average earnings surprise was a positive 9.7%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $899.3 million, reflecting an increase of 4.4% from the year-ago quarter.
The Zacks Consensus Estimate for the company’s Agricultural Solutions unit’s sales is pegged at $433 million, reflecting an increase of 4.3% on a year-over-year basis. The same for the Performance Solutions division stands at $469 million, representing year-over-year growth of 4.9%.
While the company faces challenges from raw material price inflation, it is likely to gain from cost-reduction initiatives, an expected improvement in product mix, new product launches and healthy demand conditions across the end markets in the Performance Solutions unit.
Platform Specialty Products Corporation Price and EPS Surprise
Platform Specialty Products Corporation Price and EPS Surprise | Platform Specialty Products Corporation Quote
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