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Huntsman's (HUN) Earnings and Revenues Top Estimates in Q1
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Huntsman Corporation (HUN - Free Report) recorded a profit of $708 million or $3.16 per share in first-quarter 2020, up from a profit of $131 million or 51 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 29 cents in the quarter, down from 36 cents in the year-ago quarter. The figure topped the Zacks Consensus Estimate of 19 cents.
Revenues were $1,593 million, down around 5% year over year. However, the top line surpassed the Zacks Consensus Estimate of $1,536.3 million. The company saw lower sales across its business segments in the reported quarter.
Huntsman Corporation Price, Consensus and EPS Surprise
Polyurethanes: Revenues for the segment fell 4% year over year to $888 million in the reported quarter due to lower MDI (methylene diphenyl diisocyanate) average selling prices and overall polyurethanes sales volumes.
Performance Products: Revenues for the unit declined 3% to $292 million due to reduced average selling prices as well as lower sales volumes.
Advanced Materials: Revenues for the unit dropped 11% to $241 million due to lower average selling prices and sales volumes.
Textile Effects: Revenues for the division were down 5% to $180 million. The decline was due to lower average selling prices that more than offset higher sales volumes.
Financials
Huntsman had total cash of $1,594 million at the end of the quarter, up more than three fold year over year. Long-term debt was $2,049 million, down around 12% year over year.
Net cash used in operating activities was $40 million for the reported quarter.
The company repurchased around 5.4 million shares worth roughly $96 million during the quarter.
Outlook
Moving ahead, Huntsman noted that it remains focused on protecting its balance sheet amid the global economic crisis. The company has reduced unnecessary inventories and is also trimming capital spending this year by 30% or around $90 million by delaying discretionary spending. Huntsman has also taken other actions including cost reductions and suspension of share repurchases. It will also accelerate plans to realize synergies with its recent and pending strategic acquisitions.
Price Performance
Huntsman's shares are down 27.4% in the past year against the industry’s 31.7% decline.
Zacks Rank & Stocks to Consider
Huntsman currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space are The Scotts Miracle-Gro Company (SMG - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Newmont Corporation (NEM - Free Report) .
Scotts Miracle-Gro has an expected earnings growth rate of 15.9% for the current fiscal year. The company’s shares have gained roughly 36% in the past year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 22% for the current year. It currently carries a Zacks Rank #2 (Buy). The company’s shares have surged roughly 101% in a year.
Newmont has a projected earnings growth rate of 95.5% for the current year. The company’s shares have rallied around 110% in a year. It currently has a Zacks Rank #2.
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Huntsman's (HUN) Earnings and Revenues Top Estimates in Q1
Huntsman Corporation (HUN - Free Report) recorded a profit of $708 million or $3.16 per share in first-quarter 2020, up from a profit of $131 million or 51 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 29 cents in the quarter, down from 36 cents in the year-ago quarter. The figure topped the Zacks Consensus Estimate of 19 cents.
Revenues were $1,593 million, down around 5% year over year. However, the top line surpassed the Zacks Consensus Estimate of $1,536.3 million. The company saw lower sales across its business segments in the reported quarter.
Huntsman Corporation Price, Consensus and EPS Surprise
Huntsman Corporation price-consensus-eps-surprise-chart | Huntsman Corporation Quote
Segment Highlights
Polyurethanes: Revenues for the segment fell 4% year over year to $888 million in the reported quarter due to lower MDI (methylene diphenyl diisocyanate) average selling prices and overall polyurethanes sales volumes.
Performance Products: Revenues for the unit declined 3% to $292 million due to reduced average selling prices as well as lower sales volumes.
Advanced Materials: Revenues for the unit dropped 11% to $241 million due to lower average selling prices and sales volumes.
Textile Effects: Revenues for the division were down 5% to $180 million. The decline was due to lower average selling prices that more than offset higher sales volumes.
Financials
Huntsman had total cash of $1,594 million at the end of the quarter, up more than three fold year over year. Long-term debt was $2,049 million, down around 12% year over year.
Net cash used in operating activities was $40 million for the reported quarter.
The company repurchased around 5.4 million shares worth roughly $96 million during the quarter.
Outlook
Moving ahead, Huntsman noted that it remains focused on protecting its balance sheet amid the global economic crisis. The company has reduced unnecessary inventories and is also trimming capital spending this year by 30% or around $90 million by delaying discretionary spending. Huntsman has also taken other actions including cost reductions and suspension of share repurchases. It will also accelerate plans to realize synergies with its recent and pending strategic acquisitions.
Price Performance
Huntsman's shares are down 27.4% in the past year against the industry’s 31.7% decline.
Zacks Rank & Stocks to Consider
Huntsman currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space are The Scotts Miracle-Gro Company (SMG - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Newmont Corporation (NEM - Free Report) .
Scotts Miracle-Gro has an expected earnings growth rate of 15.9% for the current fiscal year. The company’s shares have gained roughly 36% in the past year. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 22% for the current year. It currently carries a Zacks Rank #2 (Buy). The company’s shares have surged roughly 101% in a year.
Newmont has a projected earnings growth rate of 95.5% for the current year. The company’s shares have rallied around 110% in a year. It currently has a Zacks Rank #2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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