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AdvanSix (ASIX) to Post Q4 Earnings: What's in the Offing?

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AdvanSix Inc. (ASIX - Free Report) is scheduled to report fourth-quarter 2021 results before the opening bell on Feb 18.

The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 46.9%. It posted an earnings surprise of around 18% in the last-reported quarter. The company’s fourth-quarter results are likely to reflect strong demand across a number of end markets, growth of its differentiated products and higher prices.
 
The stock has rallied 44.8% in the past year against the industry’s 14.3% decline.

 

Zacks Investment Research
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 revenues for AdvanSix is currently pegged at $408.3 million, which calls for a rise of around 20% year over year.

Some Factors at Play

The company is expected to have benefited from healthy end-market demand and growth of its differentiated products in the quarter to be reported. It is seeing a recovery in demand across a number of markets including automotive, building & construction, electronics and packaging and is also gaining from strong agricultural industry fundamentals. Favorable market conditions and tight industry supply are likely to have supported demand for nylon in North America. Strong demand for chemical intermediates is also likely to have continued across a number of markets in the December quarter.

Higher demand for its product lines is expected to have supported its volumes in the fourth quarter. Higher prices are also expected to have driven its top line. However, the company is likely to have faced headwinds from higher raw material costs and supply-chain disruptions in the quarter to be reported.

AdvanSix Price and EPS Surprise

AdvanSix Price and EPS Surprise

AdvanSix price-eps-surprise | AdvanSix Quote

Zacks Model

Our proven model does not conclusively predict an earnings beat for AdvanSix 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 AdvanSix is 0.00%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 81 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AdvanSix currently carries a Zacks Rank #2.

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:

Hudbay Minerals Inc. (HBM - Free Report) , scheduled to release earnings on Feb 23, has an Earnings ESP of +4.06% 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 Hudbay Minerals’ fourth-quarter earnings has been revised 20% upward over the past 30 days. The consensus estimate for HBM’s earnings for the quarter is currently pegged at 12 cents.

Element Solutions Inc (ESI - Free Report) , slated to release earnings on Feb 22, has an Earnings ESP of +3.45% and carries a Zacks Rank #3.
 
The consensus estimate for Element Solutions’ fourth-quarter earnings has been stable in the past 30 days. The Zacks Consensus Estimate for ESI’s quarterly earnings is pegged at 29 cents.

Newmont Corporation (NEM - Free Report) , scheduled to release earnings on Feb 24, has an Earnings ESP of +3.37% and carries a Zacks Rank #3.

The consensus estimate for Newmont’s fourth-quarter earnings has been revised 2.7% upward over the past 30 days. The Zacks Consensus Estimate for NEM’s earnings for the quarter stands at 76 cents.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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