Back to top

Image: Bigstock

Chemical Stock Earnings Due on Nov 7: APD, ESI, TROX & ICL

Read MoreHide Full Article

A few companies in the chemical space are lined up to report their quarterly numbers on Nov 7. Demand weakness, faced by chemical companies in Q3, may affect results. Trade conflict has led to a slowdown in industrial activities across Asia and Europe, hurting demand for chemicals and plastics.

Specifically in China, chemical makers are seeing soft demand due to a sluggish economy. The automotive market (a major chemical end-use market) over there has slowed considerably owing to the trade tiff.

Chemical companies are also facing headwinds from raw material cost inflation. Q3 results are expected to continue reflecting the impact of input cost inflation, albeit to a lesser extent than what was witnessed during the first half of 2019.

However, these companies are benefiting from strategic measures, including cost-cutting and productivity improvement, and actions to raise selling prices. A number of companies have been taking aggressive price increase actions in the wake of raw material cost inflation. Chemical companies also remain actively focused on acquisitions to diversify and drive growth. Benefits of these initiatives might reflect on their Q3 results.

Per the Zacks industry classification, the chemical industry falls under the broader Basic Materials sector. The Q3 earnings picture for Basic Materials looks glum. The sector is among the Zacks sectors expected to see a double-digit decline in earnings in Q3. Overall earnings for the sector are projected to fall 21% on 8.7% lower revenues, per the latest Earnings Trends.

Among the chemical companies that have already come up with their Q3 numbers, we have seen positive earnings surprises from prominent chemical names like Dow Inc. (DOW - Free Report) , DuPont de Nemours, Inc. (DD - Free Report) and Celanese Corporation (CE - Free Report) .

Let’s take a peek into four chemical companies that are slated to report their quarterly results tomorrow.

Air Products and Chemicals, Inc. (APD - Free Report) will report fiscal Q4 earnings numbers ahead of the bell. Our proven model does not conclusively predict that the company is likely to beat the Zacks Consensus Estimate this quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, Air Products has an Earnings ESP of -1.40% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Air Products beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters while missed once and delivered in-line results on the other occasion. In this timeframe, the company delivered an average positive surprise of roughly 0.8%.

The Zacks Consensus Estimate for Air Products’ fiscal Q4 revenues is currently pegged at $2,322 million, suggesting a rise of roughly 1% year over year. Moreover, the Zacks Consensus Estimate for earnings currently stands at $2.29.

The Zacks Consensus Estimate for revenues in the Industrial Gases — Americas segment is currently pegged at $1,008 million, calling for an increase of 2.1% year over year.

The consensus mark for revenues in the Industrial Gases — Asia segment is pegged at $765 million, which suggests 20.9% year-over-year growth.

The Zacks Consensus Estimate for revenues in the Industrial Gases — EMEA segment is at $543 million, reflecting a decline of 2.2% year over year.

The company is likely to have gained from pricing and productivity initiatives in fiscal Q4. However, the unfavorable impact of currency is likely to reflect in its results. (Read more: Air Products to Post Q4 Earnings: What's in the Offing?)
 

Air Products and Chemicals, Inc. Price and EPS Surprise

 

Air Products and Chemicals, Inc. Price and EPS Surprise

Air Products and Chemicals, Inc. price-eps-surprise | Air Products and Chemicals, Inc. Quote

 

Element Solutions Inc (ESI - Free Report) will report Q3 results before the bell. Our proven model does not conclusively predict an earnings beat for the company this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #4. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Element Solutions beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters while missed once and delivered in-line results on the other occasion. In this timeframe, the company delivered an average negative surprise of roughly 4.3%.

The Zacks Consensus Estimate for Q3 revenues is currently pegged at $478 million, suggesting a decline of around 2.2% year over year. Moreover, the Zacks Consensus Estimate for earnings currently stands at 21 cents.

The company’s Q3 results are likely to bear the brunt of sustained pressure from the trade conflict, weakness in automotive business and slowdown in industrial production. However, it is likely to have benefited from new product launches and cost-management actions.  

Tronox Holdings plc (TROX - Free Report) will report Q3 results after the bell. Our proven model does not conclusively predict that the company is likely to beat the Zacks Consensus Estimate this quarter. This is because it has an Earnings ESP of -7.96% and a Zacks Rank #3.

The company posted better-than-expected results in two of the last four quarters while missed twice. The average earnings surprise is negative 51%.

The Zacks Consensus Estimate for revenues for the to-be-reported quarter stands at $819 million, reflecting a rise of 79.5% from the year-ago quarter. The Zacks Consensus Estimate for earnings is currently pegged at 15 cents.

Benefits of the company’s cost-reduction actions and synergy savings coupled with strength in its TiO2 pigment business are expected to get reflected on its Q3 performance. However, demand weakness for zircon due to uncertainties in China amid trade tensions is likely to affect results.

Israel Chemicals Ltd. (ICL - Free Report) will report Q3 results ahead of the bell. Our proven model does not conclusively predict an earnings beat for the company this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

The company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, at an average positive surprise of around 12.8%.

The Zacks Consensus Estimate for Israel Chemicals’ Q3 earnings is currently pegged at 9 cents.

Israel Chemicals Shs Price and EPS Surprise

 

Israel Chemicals Shs Price and EPS Surprise

Israel Chemicals Shs price-eps-surprise | Israel Chemicals Shs Quote

 

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>