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Huntsman (HUN) Q3 Earnings Match, Revenues Top Estimates
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Huntsman Corporation (HUN - Free Report) recorded net loss of $8 million or 5 cents per share in third-quarter 2018 against net income of $179 million or 60 cents recorded a year ago.
Barring one-time items, adjusted earnings were 84 cents per share in the quarter, in line with the Zacks Consensus Estimate.
Revenues totaled $2,444 million, up around 13% year over year on higher sales across all segments. The figure beat the Zacks Consensus Estimate of $2,239 million.
Huntsman Corporation Price, Consensus and EPS Surprise
Polyurethanes: Revenues at the segment rose around 13% year over year to $1,355 million on higher average selling price and sales volumes.
Performance Products: Revenues at the unit went up 20% to $599 million on an uptick in average selling prices and volumes.
Advanced Materials: Revenues at the unit increased around 6% to $279 million backed by higher average selling prices and volumes.
Textile Effects: Revenues at the division rose roughly 6% to $204 million buoyed by higher average selling prices that more than offset lower volumes.
Financials
Huntsman generated free cash flow of $226 million during the quarter, down slightly year over year. The company had $446 million of cash at the end of the quarter, down 1.1% year over year. Long-term debt was $2,277 million, down 20% year over year.
The company repurchased around 5.9 million shares worth roughly $175 million during the quarter.
Outlook
Huntsman noted that it continues to strengthen its balance sheet with net leverage improving to 1.3 times. The company is committed to a balanced approach to capital allocation by growing its downstream businesses portfolio while creating shareholder value.
The company also expects around $300-$320 million of capital expenditures this year. It expects adjusted effective tax rate for 2018 at around 19-21%.
Price Performance
Huntsman's shares have lost around 32.6% over the past year, compared with the industry’s fall of 21.1% .
Zacks Rank & Stocks to Consider
Huntsman currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (CF - Free Report) , KMG Chemicals, Inc. and The Mosaic Company (MOS - Free Report) .
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 21.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5% and a Zacks Rank #1. Its shares have risen 34.4% in a year’s time.
Mosaic has an expected long-term earnings growth rate of 7% and a Zacks Rank #2 (Buy). The company’s shares have rallied 34.4% in the past year.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
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Huntsman (HUN) Q3 Earnings Match, Revenues Top Estimates
Huntsman Corporation (HUN - Free Report) recorded net loss of $8 million or 5 cents per share in third-quarter 2018 against net income of $179 million or 60 cents recorded a year ago.
Barring one-time items, adjusted earnings were 84 cents per share in the quarter, in line with the Zacks Consensus Estimate.
Revenues totaled $2,444 million, up around 13% year over year on higher sales across all segments. The figure beat the Zacks Consensus Estimate of $2,239 million.
Huntsman Corporation Price, Consensus and EPS Surprise
Huntsman Corporation Price, Consensus and EPS Surprise | Huntsman Corporation Quote
Segment Highlights
Polyurethanes: Revenues at the segment rose around 13% year over year to $1,355 million on higher average selling price and sales volumes.
Performance Products: Revenues at the unit went up 20% to $599 million on an uptick in average selling prices and volumes.
Advanced Materials: Revenues at the unit increased around 6% to $279 million backed by higher average selling prices and volumes.
Textile Effects: Revenues at the division rose roughly 6% to $204 million buoyed by higher average selling prices that more than offset lower volumes.
Financials
Huntsman generated free cash flow of $226 million during the quarter, down slightly year over year. The company had $446 million of cash at the end of the quarter, down 1.1% year over year. Long-term debt was $2,277 million, down 20% year over year.
The company repurchased around 5.9 million shares worth roughly $175 million during the quarter.
Outlook
Huntsman noted that it continues to strengthen its balance sheet with net leverage improving to 1.3 times. The company is committed to a balanced approach to capital allocation by growing its downstream businesses portfolio while creating shareholder value.
The company also expects around $300-$320 million of capital expenditures this year. It expects adjusted effective tax rate for 2018 at around 19-21%.
Price Performance
Huntsman's shares have lost around 32.6% over the past year, compared with the industry’s fall of 21.1% .
Zacks Rank & Stocks to Consider
Huntsman currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space are CF Industries Holdings, Inc. (CF - Free Report) , KMG Chemicals, Inc. and The Mosaic Company (MOS - Free Report) .
CF Industries has an expected long-term earnings growth rate of 6% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 21.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5% and a Zacks Rank #1. Its shares have risen 34.4% in a year’s time.
Mosaic has an expected long-term earnings growth rate of 7% and a Zacks Rank #2 (Buy). The company’s shares have rallied 34.4% in the past year.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>