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Chemical Stock Earnings Slated on May 7: CBT, IFF & RYAM
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A few chemical companies are scheduled to report their quarterly numbers on May 7. Per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. Based on the Earnings Outlook as of May 2, 68.4% of the sector participants on the S&P 500 index have reported their quarterly numbers. Earnings for these companies increased 26% from the same period last year, while sales are up 11.6%.
Basic Materials is among the Zacks sectors that are expected to score the strongest gains in Q1. Earnings for the sector are projected to surge 42.5% in Q1, while revenues are expected to climb 22%.
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.
A recovery in demand in the energy space — another key chemical end-market — has also been another tailwind for the industry. The recovery is being driven by a rebound in crude oil prices from their historic lows. The rebound in oil prices has also led to a favorable pricing environment for chemical products.
While chemical companies are exposed to certain headwinds including a spike in raw materials costs, these are expected to continue gaining from strategic measures including cost-cutting and productivity improvement, pricing actions and portfolio restructuring in Q1. Synergies from acquisitions should also lend support to earnings. President Donald Trump’s business-friendly tax reform is also positive for U.S. chemical companies.
We peek at three chemical companies that are gearing up to report their quarterly results on May 7.
Cabot Corporation (CBT - Free Report) will report fiscal Q2 earnings numbers after of 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 $1.00. While the stock currently carries a favorable Zacks Rank #3 (Hold), its ESP makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cabot beat the Zacks Consensus Estimate in two of the trailing four quarters while missed in the other two, resulting an average positive surprise of 3.7%.
Revenues for Cabot for the fiscal Q2 is projected to rise 9.7% year over year, as the Zacks Consensus Estimate for the quarter is currently pegged at $744 million.
The company’s Reinforcement Materials segment is expected to gain from customer agreements and a favorable spot pricing environment in Q2. Also, continued momentum in the specialty applications is expected to benefit the Purification Solutions segment. (Read more: Cabot to Report Q2 Earnings: What's in the Cards?)
In the last four quarters, the company delivered better-than-expected results in three, while lagged in one. The average earnings surprise was a positive 3.7%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $910 million, reflecting an expected increase of 9.9% from the year-ago quarter.
The Zacks Consensus Estimate for revenues for the Flavors segment is pegged at $441 million for Q1, reflecting an increase of 8.6% from the year-ago quarter. The same for the Fragrances segment stands at $465 million, representing year-over-year growth of 10.2%.
The company is expected to benefit from growth in global and domestic economies as well as increasing trade relations with foreign nations. Particularly, emerging nations are attractive markets for the company as demand for consumer products is high in those regions. On the other hand, rise in raw material costs, industry competition and unfavorable movements in foreign currencies are concerns. (Read more: International Flavors Q1 Earnings: What to Expect?)
Internationa Flavors & Fragrances, Inc. Price and EPS Surprise
Rayonier Advanced Materials Inc. (RYAM - Free Report) will report Q1 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 43 cents. While the stock currently carries a Zacks Rank #3, its ESP makes surprise prediction difficult.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average beat of 39.4%.
Revenues for Q1 are projected to shoot up 164.2% year over year, as the Zacks Consensus Estimate is currently $531 million.
While the company is exposed to raw material cost inflation, it is expected to gain from savings from its cost transformation program and the acquisition of Tembec Inc.
Rayonier Advanced Materials Inc. Price and EPS Surprise
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Chemical Stock Earnings Slated on May 7: CBT, IFF & RYAM
A few chemical companies are scheduled to report their quarterly numbers on May 7. Per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. Based on the Earnings Outlook as of May 2, 68.4% of the sector participants on the S&P 500 index have reported their quarterly numbers. Earnings for these companies increased 26% from the same period last year, while sales are up 11.6%.
Basic Materials is among the Zacks sectors that are expected to score the strongest gains in Q1. Earnings for the sector are projected to surge 42.5% in Q1, while revenues are expected to climb 22%.
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.
A recovery in demand in the energy space — another key chemical end-market — has also been another tailwind for the industry. The recovery is being driven by a rebound in crude oil prices from their historic lows. The rebound in oil prices has also led to a favorable pricing environment for chemical products.
While chemical companies are exposed to certain headwinds including a spike in raw materials costs, these are expected to continue gaining from strategic measures including cost-cutting and productivity improvement, pricing actions and portfolio restructuring in Q1. Synergies from acquisitions should also lend support to earnings. President Donald Trump’s business-friendly tax reform is also positive for U.S. chemical companies.
We peek at three chemical companies that are gearing up to report their quarterly results on May 7.
Cabot Corporation (CBT - Free Report) will report fiscal Q2 earnings numbers after of 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 $1.00. While the stock currently carries a favorable Zacks Rank #3 (Hold), its ESP makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cabot beat the Zacks Consensus Estimate in two of the trailing four quarters while missed in the other two, resulting an average positive surprise of 3.7%.
Revenues for Cabot for the fiscal Q2 is projected to rise 9.7% year over year, as the Zacks Consensus Estimate for the quarter is currently pegged at $744 million.
The company’s Reinforcement Materials segment is expected to gain from customer agreements and a favorable spot pricing environment in Q2. Also, continued momentum in the specialty applications is expected to benefit the Purification Solutions segment. (Read more: Cabot to Report Q2 Earnings: What's in the Cards?)
Cabot Corporation Price and EPS Surprise
Cabot Corporation price-eps-surprise | Cabot Corporation Quote
International Flavors & Fragrances Inc. (IFF - Free Report) will report Q1 results after the bell. The company is expected to come up with a positive surprise as it has an Earnings ESP of +0.16% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last four quarters, the company delivered better-than-expected results in three, while lagged in one. The average earnings surprise was a positive 3.7%.
The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $910 million, reflecting an expected increase of 9.9% from the year-ago quarter.
The Zacks Consensus Estimate for revenues for the Flavors segment is pegged at $441 million for Q1, reflecting an increase of 8.6% from the year-ago quarter. The same for the Fragrances segment stands at $465 million, representing year-over-year growth of 10.2%.
The company is expected to benefit from growth in global and domestic economies as well as increasing trade relations with foreign nations. Particularly, emerging nations are attractive markets for the company as demand for consumer products is high in those regions. On the other hand, rise in raw material costs, industry competition and unfavorable movements in foreign currencies are concerns. (Read more: International Flavors Q1 Earnings: What to Expect?)
Internationa Flavors & Fragrances, Inc. Price and EPS Surprise
Internationa Flavors & Fragrances, Inc. price-eps-surprise | Internationa Flavors & Fragrances, Inc. Quote
Rayonier Advanced Materials Inc. (RYAM - Free Report) will report Q1 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 43 cents. While the stock currently carries a Zacks Rank #3, its ESP makes surprise prediction difficult.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average beat of 39.4%.
Revenues for Q1 are projected to shoot up 164.2% year over year, as the Zacks Consensus Estimate is currently $531 million.
While the company is exposed to raw material cost inflation, it is expected to gain from savings from its cost transformation program and the acquisition of Tembec Inc.
Rayonier Advanced Materials Inc. Price and EPS Surprise
Rayonier Advanced Materials Inc. price-eps-surprise | Rayonier Advanced Materials Inc. Quote
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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