LyondellBasell (LYB) to Post Q4 Earnings: What's in Store?
LyondellBasell Industries N.V. LYB is scheduled to report fourth-quarter 2023 earnings before the opening bell on Feb 2.
The company surpassed the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being roughly 22%. It delivered an earnings surprise of 24.2% in the last reported quarter. Weaker demand in most industries and higher feedstock and energy costs are likely to have impacted LYB’s fourth-quarter results.
The stock has lost 1.5% in the past year compared with the industry’s decline of 19.4%.
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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 $10,384.4 million, which suggests a rise of roughly 1.8% from the year-ago reported figure.
The consensus estimate for the Olefins and Polyolefins – Americas division’s revenues is currently pegged at $3,076 million, implying a rise of 13.7% year over year.
The same for the Olefins and Polyolefins – Europe, Asia & International division’s revenues currently stands at $2,662 million, indicating a rise of 11% from the year-ago reported figure.
The Zacks Consensus Estimate for revenues of LYB’s Advanced Polymer Solutions segment for the fourth quarter is $967 million, suggesting a year-over-year decline of 12.4%.
The consensus estimate for revenues for the Intermediaries and Derivatives segment stands at $2,914 million, which implies a 13.7% increase from the prior year’s levels.
The Zacks Consensus Estimate for the Refining segment's revenue is $1,982 million, suggesting a decline of 24.7%. The same for the Technology segment stands at $156 million, which indicates a 7.6% rise from the year-ago reported figure.
A Few Factors to Note
LyondellBasell’s fourth-quarter performance is likely to have been impacted by higher feedstock and energy costs and demand headwinds. The Olefins and Polyolefins – Americas unit is expected to have been affected by higher feedstock costs, impacting polyethylene margins. This is expected to have been offset by stronger polyethylene pricing. Continued weaker demand and higher feedstock and energy costs are expected to have hurt the Olefins and Polyolefins – Europe, Asia & International division in the December quarter.
In Intermediaries and Derivatives, oxyfuel margins are expected to have been impacted by the end of summer driving season and higher butane costs in the fourth quarter. The Advanced Polymer Solutions unit is likely to have witnessed continued weak end-market demand. Moreover, weaker demand for refined products and the maintenance of a catalytic cracker are likely to have affected LYB’s Refining segment. The company’s Technology segment is expected to have been impacted by weaker licensing revenues and lower 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 -1.01%. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $1.29. 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 they have the right combination of elements to post an earnings beat this quarter:
Nutrien Ltd. NTR, scheduled to release earnings on Feb 21, has an Earnings ESP of +8.52% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for NTR’s earnings for the fourth quarter is currently pegged at 72 cents.
Agnico Eagle Mines Limited AEM, slated to release earnings on Feb 15, has an Earnings ESP of +8.23% and carries a Zacks Rank #3 at present.
The consensus mark for AEM’s fourth-quarter earnings is currently pegged at 46 cents.
Kinross Gold Corporation KGC, scheduled to release fourth-quarter earnings on Feb 14, has an Earnings ESP of +16.37%.
The Zacks Consensus Estimate for Kinross' earnings for the fourth quarter is currently pegged at 9 cents. KGC currently carries a Zacks Rank #3.
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Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
Nutrien Ltd. (NTR) : Free Stock Analysis Report
