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Chemical Stock Q1 Earnings Slated on Apr 30: GRA, ESI & MTX

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A few chemical companies are gearing up to report their quarterly numbers tomorrow. According to the Zacks industry classification, the chemical industry is under the broader Basic Materials sector. The Q1 earnings picture looks glum for Basic Materials, which bore the brunt of the coronavirus pandemic. Overall earnings for the sector are projected to fall 33.8% on 10.7% lower revenues, per the latest Earnings Preview.

Chemical makers faced headwinds from demand slowdown across major end-use markets such as construction, automotive and electronics in Q1. Coronavirus-led shutdowns paralyzed industrial and economic activities globally during the March quarter, hurting demand for chemicals.

Notably, disruptions associated with the outbreak ground industrial activities in China (a top consumer of chemicals) to a shuddering halt during the first quarter. Activities in the construction space in China slowed down due to quarantine restrictions on workers, who returned from the Chinese Lunar New Year holidays. Moreover, coronavirus dealt a heavy blow to the automotive industry as lockdowns and quarantine restrictions led to a slump in demand and disrupted supply chains.

The virus outbreak also crippled business activities in other parts of Asia and in Europe. As such, weaker demand across key end markets is expected to have hurt sales volumes and revenues of chemical companies in the March quarter.

Chemical companies’ Q1 results are also expected to reflect some impact of input cost inflation. The closure of a large number of factories in China to blunt the spread of the outbreak disrupted the global supply chain. This has affected the availability of key raw materials for the chemical industry and pushed up prices of these inputs.

Nevertheless, benefits of strategic measures, including cost management and productivity improvement, acquisitions and actions to raise selling prices to counter cost inflation might reflect on Q1 results of the companies in this space.

Some of the industry-participants have also gained from higher demand for chemicals and materials across healthcare and packaging markets, thanks to coronavirus. The outbreak has led to a surge in demand for health, hygiene and safety products (including PPEs, sanitizers, disinfectants and cleaning products).

We take a look at three chemical companies that are gearing up to report their Q1 results on Apr 30.

W. R. Grace & Co. (GRA - Free Report) will report earnings numbers before the bell. Our proven model does not conclusively predict an earnings beat for the company 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, the company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

W. R. Grace beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the positive surprise being roughly 4.2%, on average.

The Zacks Consensus Estimate for revenues for the company for the to-be-reported quarter stands at $432.9 million, suggesting an expected year-over-year decline of 7.8%. The consensus estimate for Q1 earnings is 68 cents.
 

W.R. Grace & Co. Price and EPS Surprise

 

W.R. Grace & Co. Price and EPS Surprise

W.R. Grace & Co. price-eps-surprise | W.R. Grace & Co. Quote

 

Element Solutions Inc (ESI - Free Report) will report 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an average positive surprise of around 12.5%.

The Zacks Consensus Estimate for revenues for Element Solutions for the to-be-reported quarter stands at $438 million, suggesting an expected year-over-year decline of 4.7%. The consensus estimate for Q1 earnings is 20 cents.
 

Element Solutions Inc Price and EPS Surprise

 

Element Solutions Inc Price and EPS Surprise

Element Solutions Inc price-eps-surprise | Element Solutions Inc Quote

 

Minerals Technologies Inc. (MTX - Free Report) will report results after the closing bell. Our proven model does not conclusively predict an earnings beat for the company. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #3.

The Zacks Consensus Estimate for revenues for Q1 for the company is currently pegged at $439.3 million, indicating an expected year-over-year rise of 0.4%. The consensus estimate for Q1 earnings is 95 cents.
 

Minerals Technologies Inc. Price and EPS Surprise

 

Minerals Technologies Inc. Price and EPS Surprise

Minerals Technologies Inc. price-eps-surprise | Minerals Technologies Inc. Quote

 

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Element Solutions Inc (ESI) - free report >>

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