LyondellBasell (LYB) to Post Q2 Earnings: What's in Store?
LyondellBasell Industries N.V. LYB is scheduled to report second-quarter 2023 earnings before the opening bell on Aug 4.
The company surpassed the Zacks Consensus Estimate in three of the last four quarters while missed once, the average earnings surprise being roughly 7%. It delivered an earnings surprise of 38.9% in the last reported quarter. LYB's second-quarter results are likely to reflect improved demand conditions and lower feedstock and energy costs.
The stock has gained 12.7% in the past year compared with the industry’s rise of 12.9%.
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Let’s see how things are shaping up for this announcement.
What Do the Estimates Say?
The Zacks Consensus Estimate for revenues for the to-be-reported quarter is currently pegged at $10,396 million, which suggests a decline of 29.9% from the year-ago reported figure.
Our estimate for the Olefins and Polyolefins – Americas division’s revenues is currently pegged at $2,845.4 million, implying a decline of 32.9% year over year.
The same for the Olefins and Polyolefins – Europe, Asia & International division’s revenues currently stands at $2,451.6 million, indicating a decline of 37.1% from the year-ago reported figure.
Our estimate for revenues of LYB’s Advanced Polymer Solutions segment for the second quarter is $833.6 million, suggesting a year-over-year decline of 25.3%.
We also expect revenues for the Intermediaries and Derivatives segment to be $2,513.4 million, which implies a 33.3% decline from the prior year’s levels.
Our estimate for the Refining segment's revenue is $2,254.6 million, suggesting a decline of 40.5%. The same for the Technology segment stands at $143.4 million, which indicates a 26.1% fall from the year-ago reported figure.
A Few Factors to Note
LYB’s second-quarter performance is likely to have been aided by higher demand and moderate feedstock and energy costs. The Olefins and Polyolefins – Americas unit is likely to have benefited from improved demand in the quarter on higher seasonal demand and lower input costs. Improved consumer demand and better operating rates are also likely to have supported the Olefins and Polyolefins – Europe, Asia & International division’s performance in the June quarter.
Moreover, the Advanced Polymer Solutions unit is expected to have witnessed continued improvement in demand. In Intermediaries and Derivatives, oxyfuel margins are expected to have remained strong on healthy demand for gasoline in the second quarter. However, weaker demand for durable goods is expected to continue to have hurt propylene oxide margins. The company’s Technology segment is likely to have been aided by improved levels of revenues from licensing and catalyst volumes.
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 -9.71%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at $2.29. 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 these have the right combination of elements to post an earnings beat this quarter:
AdvanSix Inc. ASIX, scheduled to release earnings on Aug 4, has an Earnings ESP of +8.69%.
The Zacks Consensus Estimate for ASIX's earnings for the second quarter is currently pegged at $1.11. ASIX currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.
Compass Minerals International, Inc. CMP, scheduled to release earnings on Aug 8, has an Earnings ESP of +30.16% and carries a Zacks Rank #3.
The consensus estimate for CMP’s earnings for the fiscal third quarter is currently pegged at a loss of 16 cents.
Pan American Silver Corp. PAAS, slated to release earnings on Aug 9, has an Earnings ESP of +4.62% and carries a Zacks Rank #3 at present.
The consensus mark for PAAS’ second-quarter earnings is currently pegged at 8 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
Compass Minerals International, Inc. (CMP) : Free Stock Analysis Report
Pan American Silver Corp. (PAAS) : Free Stock Analysis Report
AdvanSix (ASIX) : Free Stock Analysis Report
