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LyondellBasell (LYB) to Report Q4 Earnings: What's in Store?
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LyondellBasell Industries N.V. (LYB - Free Report) is set to release fourth-quarter 2021 results on Jan 28, before the opening bell.
LyondellBasell’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 21.5%, on average. The company reported a negative earnings surprise of 9.2% in the last reported quarter. The fourth-quarter performance is likely to reflect favorable market trends and higher demand for its products, backed by a recovery in the global economy. However, it is likely to have faced headwinds from higher raw material and energy costs.
Shares of LyondellBasell have gained 6.3% in the past year in-line with the industry’s rise.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for fourth-quarter consolidated sales is pegged at $12,368 million, suggesting an increase of around 55.8% year over year.
The Zacks Consensus Estimate for sales in the Olefins & Polyolefins — Americas unit is currently pegged at $3,888 million, suggesting an increase of 75.9% year over year.
The Zacks Consensus Estimate for sales in the Olefins & Polyolefins — Europe, Asia, International segment is currently pegged at $3,389 million, indicating an increase of 37.8% year over year.
The consensus mark for sales in the Intermediates and Derivatives segment is currently pegged at $2,789 million, suggesting an increase of 54.6% year over year.
The Zacks Consensus Estimate for sales in the Advanced Polymer Solutions segment is pegged at $1,312 million, indicating an 18.4% year-over-year rise.
The Zacks Consensus Estimate for sales in the Refining segment is currently at $2,339 million, calling for an increase of 85.8% year over year.
The consensus mark for sales in the Technology segment is currently pegged at $182 million, indicating an 8.9% rise year over year.
Factors at Play in Q4
The company is likely to have benefited from strength in demand in the Olefins & Polyolefins-Americas segment in the fourth quarter.
Strong demand for durable goods and improved transportation fuels demand are also expected to have aided performance in the Intermediates and Derivatives unit. The restart of the La Porte acetyls facility is also expected to have supported volumes in this unit. A recovery in demand for gasoline is also expected to have contributed to improved margins in the Refining business in the quarter to be reported.
The company is also expected to have witnessed headwinds stemming from higher feedstock and energy costs in the December quarter in its Olefins & Polyolefins businesses. LYB is also expected to have faced volume pressure as semiconductor shortages are hurting demand in the polymers serving automotive and electronic end markets. Margins in the Advanced Polymer Solutions segment are likely to have been impacted by supply chain constraints.
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 -3.00%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at $3.96. 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 other companies in the basic materials space you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Celanese's fourth-quarter earnings has been revised 0.6% upward in the past 60 days. The consensus estimate for CE’s earnings for the quarter is currently pegged at $5.05.
CF Industries Holdings, Inc. (CF - Free Report) , expected to release earnings on Feb 16, has an Earnings ESP of +9.44% and carries a Zacks Rank #2.
The consensus estimate for CF Industries' fourth-quarter earnings has been revised 31.5% upward in the past 60 days. The Zacks Consensus Estimate for CF’s quarterly earnings is pegged at $3.25.
Methanex Corporation (MEOH - Free Report) , scheduled to release earnings on Jan 26, has an Earnings ESP of +0.52% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Methanex's fourth-quarter earnings has been revised 4.2% upward in the past 60 days. The consensus estimate for MEOH’s earnings for the quarter is currently pegged at $2.56.
Image: Bigstock
LyondellBasell (LYB) to Report Q4 Earnings: What's in Store?
LyondellBasell Industries N.V. (LYB - Free Report) is set to release fourth-quarter 2021 results on Jan 28, before the opening bell.
LyondellBasell’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 21.5%, on average. The company reported a negative earnings surprise of 9.2% in the last reported quarter. The fourth-quarter performance is likely to reflect favorable market trends and higher demand for its products, backed by a recovery in the global economy. However, it is likely to have faced headwinds from higher raw material and energy costs.
Shares of LyondellBasell have gained 6.3% in the past year in-line with the industry’s rise.
Let’s see how things are shaping up for this announcement.
What do the Estimates Say?
The Zacks Consensus Estimate for fourth-quarter consolidated sales is pegged at $12,368 million, suggesting an increase of around 55.8% year over year.
The Zacks Consensus Estimate for sales in the Olefins & Polyolefins — Americas unit is currently pegged at $3,888 million, suggesting an increase of 75.9% year over year.
The Zacks Consensus Estimate for sales in the Olefins & Polyolefins — Europe, Asia, International segment is currently pegged at $3,389 million, indicating an increase of 37.8% year over year.
The consensus mark for sales in the Intermediates and Derivatives segment is currently pegged at $2,789 million, suggesting an increase of 54.6% year over year.
The Zacks Consensus Estimate for sales in the Advanced Polymer Solutions segment is pegged at $1,312 million, indicating an 18.4% year-over-year rise.
The Zacks Consensus Estimate for sales in the Refining segment is currently at $2,339 million, calling for an increase of 85.8% year over year.
The consensus mark for sales in the Technology segment is currently pegged at $182 million, indicating an 8.9% rise year over year.
Factors at Play in Q4
The company is likely to have benefited from strength in demand in the Olefins & Polyolefins-Americas segment in the fourth quarter.
Strong demand for durable goods and improved transportation fuels demand are also expected to have aided performance in the Intermediates and Derivatives unit. The restart of the La Porte acetyls facility is also expected to have supported volumes in this unit. A recovery in demand for gasoline is also expected to have contributed to improved margins in the Refining business in the quarter to be reported.
The company is also expected to have witnessed headwinds stemming from higher feedstock and energy costs in the December quarter in its Olefins & Polyolefins businesses. LYB is also expected to have faced volume pressure as semiconductor shortages are hurting demand in the polymers serving automotive and electronic end markets. Margins in the Advanced Polymer Solutions segment are likely to have been impacted by supply chain constraints.
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 -3.00%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at $3.96. 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 other companies in the basic materials space you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Celanese Corporation (CE - Free Report) , scheduled to release earnings on Jan 27, has an Earnings ESP of +2.98% and carries a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Celanese's fourth-quarter earnings has been revised 0.6% upward in the past 60 days. The consensus estimate for CE’s earnings for the quarter is currently pegged at $5.05.
CF Industries Holdings, Inc. (CF - Free Report) , expected to release earnings on Feb 16, has an Earnings ESP of +9.44% and carries a Zacks Rank #2.
The consensus estimate for CF Industries' fourth-quarter earnings has been revised 31.5% upward in the past 60 days. The Zacks Consensus Estimate for CF’s quarterly earnings is pegged at $3.25.
Methanex Corporation (MEOH - Free Report) , scheduled to release earnings on Jan 26, has an Earnings ESP of +0.52% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Methanex's fourth-quarter earnings has been revised 4.2% upward in the past 60 days. The consensus estimate for MEOH’s earnings for the quarter is currently pegged at $2.56.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.