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LyondellBasell (LYB) to Post Q1 Earnings: What's in Store?

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LyondellBasell Industries N.V. (LYB - Free Report) is set to release first-quarter 2020 results on May 1, before the opening bell.

The company has a trailing four-quarter negative earnings surprise of 5.2%, on average.  

The stock has lost 43.8% in the past year compared with 36.9% decline of the industry.



What to Expect in Q1

Recently, LyondellBasell provided an operational update and estimated financial results for first-quarter 2020.

The company projects net income in the range $110-$180 million for the first quarter. EBITDA is expected between $610 million and $680 million ($1,055 million to $1,075 million excluding non-cash inventory valuation charges).

Factors at Play  

The impact of coronavirus on the company’s global markets and steep decline in oil prices are likely to get reflected in first-quarter results. The pandemic has led to reduced demand for some of the company’s products, including those serving the automotive markets, during the March quarter. This may have had a partial impact on the company’s first-quarter performance.

Nevertheless, the company is likely to have gained from higher demand for its products in medical applications and packaging in the quarter to be reported.

What do the Estimates Indicate?

The Zacks Consensus Estimate for first-quarter consolidated sales is pegged at $7,507 million, which suggests a fall of 14.5% year over year.  

The Zacks Consensus Estimate for sales in the LyondellBasell’s Olefins & Polyolefins — Americas unit is currently pegged at $1,852 million, which calls for a decline of 12.3% from the year-ago quarter’s figure.

The Zacks Consensus Estimate for sales in the Olefins & Polyolefins — Europe, Asia, International segment is currently pegged at $2,085 million, which suggests a decline of 17.8% year over year.

The consensus mark for sales in the Intermediates and Derivatives segment is currently pegged at $1,738 million, which calls for a drop of 8.2% from the year-ago quarter’s tally.

The Zacks Consensus Estimate for sales in the Refining segment is currently at $1,829 million, which indicates a year-over-year fall of 2.8% year over year.

The consensus mark for sales in the Technology segment is currently pegged at $148 million, which suggests a rise of nearly 5% from the year-ago quarter’s tally.

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What Does the Zacks Model Say?

Our proven model doesn’t predict an earnings beat for LyondellBasell this time around. 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. But that’s not the case here.

Earnings ESP: Earnings ESP for LyondellBasell is 0.00%. The Most Accurate Estimate and the Zacks Consensus Estimate are both currently pegged at $1.36.

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 #5 (Strong Sell).

Stocks Likely to Beat Estimates

Here are some companies that you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Franco-Nevada Corporation (FNV - Free Report) , scheduled to release first-quarter 2020 earnings on May 6, has an Earnings ESP of +1.38% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wheaton Precious Metals Corp. (WPM - Free Report) , scheduled to release first-quarter results on May 6, has an Earnings ESP of +4.54% and carries a Zacks Rank #2.

Yamana Gold Inc. (AUY - Free Report) , slated to release first-quarter earnings on Apr 30, has an Earnings ESP of +12.50% and carries a Zacks Rank #3.

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