LyondellBasell (LYB) to Post Q3 Earnings: What's in Store?
LyondellBasell Industries N.V. LYB is scheduled to report third-quarter 2023 earnings before the opening bell on Oct 27.
The company surpassed the Zacks Consensus Estimate in three of the last four quarters while missed once, the average earnings surprise being roughly 7.5%. It delivered an earnings surprise of 6.6% in the last reported quarter. LYB is expected to have benefited from lower feedstock and energy costs and healthy automotive demand in the third quarter. However, weaker demand in durable products and construction and electronics markets are likely to have impacted its results.
The stock has gained 8.2% in the past year compared with the industry’s decline of 5.5%.
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Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for LyondellBasell this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for LyondellBasell is +4.69%. The Zacks Consensus Estimate for the third quarter is currently pegged at $1.98. 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.
What Do the Estimates Say?
The Zacks Consensus Estimate for revenues for the to-be-reported quarter is currently pegged at $10,293.4 million, which suggests a decline of roughly 16% from the year-ago reported figure.
A Few Factors to Note
LyondellBasell’s third-quarter performance is likely to have been aided by moderate feedstock and energy costs amid demand headwinds. The Olefins and Polyolefins – Americas unit is likely to have been impacted by weaker demand in the quarter on cautious buying by its customers. While lower feedstock costs are likely to have benefited the Olefins and Polyolefins – Europe, Asia & International division, weaker demand in durable products might have impacted the segment’s performance in the September quarter.
In Intermediaries and Derivatives, oxyfuel margins are expected to have been impacted by increased costs in the third quarter. Moreover, weaker demand for durable goods is expected to continue to have hurt propylene oxide margins. The Advanced Polymer Solutions unit is expected to have witnessed continued momentum in the automotive market offsetting the weakness in construction and electronics markets. The segment is also expected to have benefited from lower energy costs. Lower refining crack spreads are likely to continue to have impacted margins in LYB’s Refining segment. The company’s Technology segment is likely to have been aided by improved licensing revenues and catalyst volumes.
LyondellBasell Industries N.V. Price and EPS Surprise
LyondellBasell Industries N.V. price-eps-surprise | LyondellBasell Industries N.V. Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
Axalta Coating Systems Ltd. AXTA, scheduled to release earnings on Nov 1, has an Earnings ESP of +5.39% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AXTA’s earnings for the third quarter is currently pegged at 38 cents.
CF Industries Holdings, Inc. CF, slated to release earnings on Nov 1, has an Earnings ESP of +4.79% and carries a Zacks Rank #3 at present.
The consensus mark for CF’s third-quarter earnings is currently pegged at 94 cents.
Kinross Gold Corporation KGC, scheduled to release third-quarter earnings on Nov 8, has an Earnings ESP of +3.48%.
The Zacks Consensus Estimate for Kinross' earnings for the third quarter is currently pegged at 10 cents. KGC currently carries a Zacks Rank #3.
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CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
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