Westlake (WLK) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Westlake Chemical (WLK) reported $3.12 billion in revenue for the quarter ended September 2023, representing a year-over-year decline of 21.3%. EPS of $2.20 for the same period compares to $3.10 a year ago.
The reported revenue represents a surprise of -6.45% over the Zacks Consensus Estimate of $3.33 billion. With the consensus EPS estimate being $1.92, the EPS surprise was +14.58%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Westlake performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net external sales- Performance and Essential Materials: $1.97 billion versus the five-analyst average estimate of $2.16 billion. The reported number represents a year-over-year change of -27.3%.
Net external sales- Housing and Infrastructure Products: $1.14 billion versus the five-analyst average estimate of $1.16 billion. The reported number represents a year-over-year change of -8.1%.
Net external sales- Performance and Essential Materials - Performance materials: $1.13 billion versus the three-analyst average estimate of $1.17 billion.
Net external sales- Performance and Essential Materials - Essential materials: $844 million compared to the $965.84 million average estimate based on three analysts.
Net external sales- Housing and Infrastructure Products - Housing products: $963 million versus the two-analyst average estimate of $998.91 million.
Net external sales- Housing and Infrastructure Products - Infrastructure products: $181 million versus $205.67 million estimated by two analysts on average.
EBITDA- Housing and Infrastructure Products: $327 million compared to the $224.43 million average estimate based on three analysts.
EBITDA- Performance and Essential Materials: $339 million versus $448.77 million estimated by three analysts on average.
View all Key Company Metrics for Westlake here>>>
Shares of Westlake have returned -6.2% over the past month versus the Zacks S&P 500 composite's -1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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