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

·5 min read

LyondellBasell Industries N.V. LYB is set to release first-quarter 2021 results on Apr 30, before the opening bell. The company is likely to have benefited from favorable market trends and higher demand for its products on a recovery in global economies.

LyondellBasell beat the Zacks Consensus Estimate for earnings in all of the trailing four quarters. It has a trailing four-quarter earnings surprise of roughly 26.8%, on average. The company posted an earnings surprise of around 67.2% in the last reported quarter.

Shares of LyondellBasell have gained 75.1% in the past year compared with 59.2% rise of the industry.

Let’s see how things are shaping up for this announcement.

What do the Estimates Say?

The Zacks Consensus Estimate for first-quarter consolidated sales for LyondellBasel is pegged at $9,064 million, which suggests an increase of around 20.9% year over year.

The Zacks Consensus Estimate for sales in LyondellBasell’s Olefins & Polyolefins — Americas unit is currently pegged at $2,700 million, which suggests an increase of 50.7% year over year.

The Zacks Consensus Estimate for sales in the Olefins & Polyolefins — Europe, Asia, International segment is currently pegged at $2,782 million, which suggests an increase of 25.1% year over year.

The consensus mark for sales in the Intermediates and Derivatives segment is currently pegged at $1,954 million, which suggests an increase of 10.4% year over year.

The Zacks Consensus Estimate for sales in the Refining segment is currently at $1,398 million, which indicates a fall of 3.5% year over year.

The consensus mark for sales in the Technology segment is currently pegged at $137 million, which suggests an increase of 12.3% year over year.

Factors at Play in Q1

The company is likely to have gained from strong consumer-driven demand and continued recovery in durable goods market in the quarter to be reported. It is expected to have benefited from higher polyethylene demand in the quarter. Higher demand is expected to have supported volumes and margins in the Olefins and Polyolefins businesses. Strong polypropylene-based durable goods demand is also expected to have aided performance in the Advanced Polymer Solutions segment.

However, the company is likely to faced headwinds in the Refining segment as well as in the Intermediates and Derivatives unit in the March quarter. Results of the Intermediates and Derivatives segment were affected by lower margins in the last reported quarter. Moreover, margins are likely to have been impacted, in the first quarter by weak gasoline demand and prices for Oxyfuels & Related products. Moreover, margins in the Refining unit are expected to have remained under pressure as demand for gasoline and jet fuel is yet to return to pre-pandemic levels.

LyondellBasell is also likely to have faced headwinds from disruptions associated with planned maintenance at the Channel view propylene oxide and styrene monomer unit in the Intermediates and Derivatives segment in the first quarter.

LyondellBasell Industries N.V. Price and EPS Surprise

LyondellBasell Industries N.V. Price and EPS Surprise
LyondellBasell Industries N.V. Price and EPS Surprise

LyondellBasell Industries N.V. price-eps-surprise | LyondellBasell Industries N.V. Quote

Zacks Model

Our proven model does not conclusively predict an earnings beat for LyondellBasell this season. 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 -4.03%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at $2.65. 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 #3.

Stocks That Warrant a Look

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

Westlake Chemical Corporation WLK, scheduled to release earnings on May 4, has an Earnings ESP of +0.64% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

AdvanSix Inc. ASIX, scheduled to release earnings on Apr 30, has an Earnings ESP of +7.69% and sports a Zacks Rank #1.

CF Industries Holdings, Inc. CF, scheduled to release earnings on May 5, has an Earnings ESP of +21.62% and carries a Zacks Rank #3.

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