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Huntsman (HUN) Earnings and Revenues Top Estimates in Q1

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Huntsman Corporation (HUN - Free Report) recorded profits of $100 million or 37 cents per share in first-quarter 2021, down from a profit of $708 million or $3.16 in the year-ago quarter.

Barring one-time items, adjusted earnings per share were 66 cents in the quarter. The figure topped the Zacks Consensus Estimate of 59 cents.

Revenues were $1,837 million, up around 15% year over year. The top line surpassed the Zacks Consensus Estimate of $1,745.3 million. The company witnessed higher sales across its segments in the reported quarter on accelerated economic recovery.

 

Huntsman Corporation Price, Consensus and EPS Surprise

 

Huntsman Corporation Price, Consensus and EPS Surprise

Huntsman Corporation price-consensus-eps-surprise-chart | Huntsman Corporation Quote

 

Segment Highlights

Polyurethanes: Revenues for the segment rose 20% year over year to $1,068 million in the reported quarter due to higher MDI (methylene diphenyl diisocyanate) average selling prices. MDI sales volumes fell in the quarter due to a turnaround at the company’s Geismar, LA facility.

Performance Products: Revenues went up 4% to $305 million due to increased average selling prices that was partly offset by lower sales volumes resulting from winter storm Uri in the U.S. Gulf Coast.

Advanced Materials: Revenues for the unit increased 15% to $278 million on higher average selling prices and the benefits of CVC Thermoset Specialties and Gabriel acquisitions.

Textile Effects: Revenues for the division rose 7% to $193 million. The increase was due to higher sales volumes, partly offset by reduced average selling prices.

Financials

Huntsman had total cash of $673 million at the end of the quarter, down around 58% year over year. Long-term debt was $1,510 million, down around 26% year over year.

Outlook

Moving ahead, Huntsman said that its strong liquidity and balance sheet leverage gives it adequate flexibility to continue to develop and expand its core businesses through acquisitions and internal investments.

The company also remains on track to deliver more than $120 million of annualized savings and acquisition integration synergies by mid-2023.

Price Performance

Huntsman's shares are up 89% in the past year against the industry’s 71.9% rise.

 

 

 

Zacks Rank & Key Picks

Huntsman currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 100% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 89% in a year. It currently sports a Zacks Rank #1.

Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 235% in the past year. It currently carries a Zacks Rank #1.

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