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LyondellBasell (LYB) to Post Q2 Earnings: What's in Store?

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LyondellBasell Industries N.V. (LYB - Free Report) is set to release second-quarter 2019 results before the opening bell on Aug 2.

The stock lost around 23.9% in the past year compared with 37.2% decline recorded by the industry.



What the Zacks Model Says

Our proven model shows that LyondellBasell is likely to beat estimates in the to-be-reported quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is the case here, as you will see below:

Earnings ESP: Earnings ESP for LyondellBasell is +0.12%. The Zacks Consensus Estimate is currently pegged at $2.84. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: LyondellBasell currently carries a Zacks Rank #2, which when combined with a positive ESP, makes us reasonably confident of earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Factors at Play in Q2

In June, the company provided a preliminary guidance for second-quarter 2019 financial results.

It expects EBITDA to improve roughly 10-20% sequentially in the range of $1,575-$1,675 million in the to-be-reported quarter. Net income is projected between $1,035 million and $1,080 million. Earnings per share (EPS) are expected between $2.79 and $2.91.

The Zacks Consensus Estimate for total second-quarter revenues is pegged at $9,256 million, which indicates a decline of 9.3% year over year.

The company stated that North American integrated ethylene margins improved in the quarter to be reported, courtesy of lower feedstock costs. Moreover, oxyfuels also witnessed typical seasonal upside. However, pressure on margins in the refining business is a headwind.

LyondellBasell Industries N.V. Price and EPS Surprise

 

LyondellBasell Industries N.V. Price and EPS Surprise

LyondellBasell Industries N.V. price-eps-surprise | LyondellBasell Industries N.V. Quote

 

Other Stocks Poised to Beat Estimates

Here are some other companies in the basic materials space you may want to consider as our model shows that they also have the right combination of elements to post a beat this time around:

Barrick Gold Corporation (GOLD - Free Report) has an Earnings ESP of +0.70% and carries a Zacks Rank #2.

Covia Holdings Corporation (CVIA - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #3.

Carpenter Technology Corporation (CRS - Free Report) has an Earnings ESP of +0.27% and carries a Zacks Rank #3.

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