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Huntsman (HUN) Provides Stronger Updated Outlook for Q1

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Huntsman Corporation (HUN - Free Report) announced an updated outlook for first-quarter 2022. The company now anticipates adjusted EBITDA for the quarter to be at or greater than the high end of the earlier-announced guidance of $350-$380 million. This company revised the guidance after reviewing February results and the developing business trends in March.

Despite considerable energy cost rise in Europe, adjusted EBITDA margin in the first quarter is trending to 17%, the company noted.

The improved updated guidance is led by continued momentum in the Performance Products segment and to a lesser degree in Advanced Materials. In the Polyurethanes segment, headwinds in the European region are being masked by strength in North America and Asia.

Huntsman stated that despite macro headwinds in Europe, the multi-year transformation of its portfolio along with persistent pricing and cost execution has enabled its businesses to perform well.

The company’s credit rating has been upgraded from BBB- to BBB by Fitch Ratings. This upgrade has further validated the company’s overall financial profile, underlying business strength and clear strategy.

Shares of Huntsman have increased 30.3% in the past year compared with a 2.6% decline of the industry.

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Zacks Rank & Key Picks

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

Some other top-ranked stocks in the basic materials space are Allegheny Technologies Incorporated (ATI - Free Report) , The Mosaic Company (MOS - Free Report) and AdvanSix Inc. (ASIX - Free Report) .

Allegheny, currently carrying a Zacks Rank #2, has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 25% over a year.

Mosaic, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 104.8% for the current year. The Zacks Consensus Estimate for MOS's current-year earnings has been revised 21.3% upward in the past 60 days.

Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 98.6% in a year.

AdvanSix has a projected earnings growth rate of 17.3% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 12.4% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 12.4%. ASIX has surged 47.8% in a year. The company carries a Zacks Rank #2.


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