A few chemical companies are slated to report their quarterly results on Nov 4. As per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector.
Based on the earnings scorecard as of Nov 2, 75% of the sector participants on the S&P 500 index have reported their quarterly numbers. Earnings for these companies have increased 7.5% from the same period last year while revenues are down 2.2%, per the latest Earnings Outlook. Overall earnings for the sector are expected to rise 3.7% on 3.2% lower sales.
The chemical industry is gradually gaining strength on the back of sustained momentum in the automotive space and rebounding construction markets. Chemical makers are gaining from strategic measures including expansion into high-growth markets, aggressive cost management and productivity actions as well as acquisitions.
However, the industry faces certain roadblocks including a still weak agriculture market, weak demand in the energy space, a choppy Europe and slowdown in China.
Let’s take a peek at four chemical companies that are slated to report their third-quarter results on Nov 4.
Univar Inc. (NYSE:UNVR) , which will report before the bell, has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 20 cents. The stock carries a favorable Zacks Rank #3 (Hold), but its 0.00% ESP makes surprise prediction difficult. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
The company posted an average negative earnings surprise of 31.52% in the last four quarters. Univar faces headwinds in the upstream oil and gas markets. Industrial demand is also anticipated to remain sluggish in the third quarter. The company is executing several cost saving programs, in an attempt to drive productivity and operational excellence and grow organically. (Read more: What's in Store for Univar this Earnings Season?)
Kronos Worldwide, Inc. (NYSE:KRO) has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 9 cents. This complicates our surprise prediction even though the stock carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Kronos missed estimates in three of the trailing four quarters with an average negative surprise of 74.22%.
Platform Specialty Products Corporation (NYSE:PAH) will report before the bell. The company has an Earnings ESP of -18.18% and a Zacks Rank #4 (Sell), making it difficult to predict an earnings beat. The company delivered an average negative earnings surprise of 15.52% over the trailing four quarters.
Valhi, Inc. (NYSE:VHI) has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at a penny per share. The stock carries a Zacks Rank #3, but its 0.00% ESP makes surprise prediction difficult. Valhi beat estimates in two of the trailing four quarters, while it missed twice, resulting in an average negative surprise of 67.26%.
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KRONOS WORLDWD (KRO): Free Stock Analysis Report
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UNIVAR INC (UNVR): Free Stock Analysis Report
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