Back to top

Image: Bigstock

Huntsman (HUN) to Report Q2 Earnings: What's in the Cards?

Read MoreHide Full Article

Huntsman Corporation (HUN - Free Report) is set to release second-quarter 2022 results before market open on Aug 2. The company’s earnings are likely to have benefited from healthy demand and prices for MDI (methylene diphenyl diisocyanate) and acquisitions. However, HUN is expected to have faced headwinds from higher raw material costs.

Huntsman beat the Zacks Consensus Estimate for earnings in all of the last four quarters. The company has a trailing-four quarter earnings surprise of 12.6%, on average. The company delivered an earnings surprise of 19% in the last reported quarter.

Shares of Huntsman are up 11.7% in the past year against an 8% decline of its industry.

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 Huntsman’s second-quarter revenues is currently pinned at $2,323 million, indicating a 14.8% year-over-year increase.

The Zacks Consensus Estimate for the Advanced Materials division’s revenues is pegged at $330 million, suggesting a 10.4% rise year over year.

The consensus estimate for the Performance Products unit’s revenues is pegged at $451 million, indicating an increase of 51.1% year over year.

The consensus estimate for the Polyurethanes’ unit’s revenues is pegged at $1,363 million, indicating an increase of 18% year over year.

The consensus estimate for the Textile Effects division’s revenues is pegged at $201 million, indicating a decline of 3% year over year.

Factors to Watch For

The company is likely to have benefited from healthy demand for MDI, driven by megatrends and material substitution. Higher MDI prices and demand is expected to have supported performance in the core Polyurethanes segment.

Huntsman is also expected to have gained from the contributions of the acquisitions in the to-be-reported quarter. The benefits of CVC Thermoset Specialties and Gabriel acquisitions are expected to get reflected in the Advanced Materials unit.

However, the company is likely to have faced headwinds from higher raw material costs led by supply disruptions. The unfavorable impacts from higher costs of raw materials are likely to get reflected in the June-quarter performance.

The company is also expected to have witnessed some volume pressure in the second quarter due to new restrictions in China following a surge in coronavirus cases in the country.

Zacks Model

Our proven model does not conclusively predict an earnings beat for Huntsman this time around. 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 Huntsman is -1.13%. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $1.14. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Huntsman currently carries a Zacks Rank #3.

Huntsman Corporation Price, Consensus and EPS Surprise

 

Huntsman Corporation Price, Consensus and EPS Surprise

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

 

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:

Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +8.38% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Albemarle’s second-quarter earnings has been revised 21.5% upward in the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.94.

Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and sports a Zacks Rank #1.

The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.

Air Products and Chemicals, Inc. (APD - Free Report) , slated to release earnings on Aug 4, has an Earnings ESP of +0.29% and carries a Zacks Rank #3.

The Zacks Consensus Estimate for Air Products’ fiscal third-quarter earnings has been stable over the past 60 days. The consensus estimate for APD’s earnings for the quarter stands at $2.61.

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

Published in