Westlake Chemical Corporation (NYSE:WLK) is a vertically integrated international producer and supplier of petrochemicals, polymers and fabricated products. The company's range of products includes ethylene, polyethylene, styrene, vinyl intermediates, PVC, PVC Pipe, PVC windows, fence and decking components.
Westlake Chemical Corporation Price and EPS Surprise
Westlake Chemical Corporation (WLK): Free Stock Analysis Report
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Westlake Chemical is benefiting from healthy demand for olefins and vinyls products. Moreover, the Axiall Corp. acquisition is expected to deliver meaningful annual cost synergies.
Let’s have a quick look at the company’s third-quarter 2017 release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Westlake Chemical for the third quarter has been increasing over the last month. The company has beaten the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average positive surprise of 17.7%.
Earnings
Westlake Chemical’s adjusted earnings came in at $1.65 per share in the quarter, which topped the Zacks Consensus Estimate of $1.39.
Westlake Chemical Corporation Price and EPS Surprise
Westlake Chemical reported net sales of $2,108.9 million, up around 65% year over year. Sales in the quarter benefited from contribution of Axiall acquisition and increased selling prices for major products. Revenues, however, missed the Zacks Consensus Estimate of $2,123 million.
Key Developments to Note
Westlake Chemical’s third-quarter results benefited from strong global demand of its key products and increasing prices in the Vinyls segment. The company expects the Axiall acquisition and its investments to improve the operational efficiency of its assets will allow it to fully leverage the improving Vinyls market.
Zacks Rank
Currently, Westlake Chemical has a Zacks Rank #1 (Strong Buy), but that could change following its earnings report which was just released.
Market Reaction
Westlake Chemical’s shares were inactive in pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.
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Westlake Chemical Corporation (WLK): Free Stock Analysis Report
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