Back to top

Image: Bigstock

LyondellBasell (LYB) to Post Q1 Earnings: What's in Store?

Read MoreHide Full Article

LyondellBasell Industries N.V. (LYB - Free Report) is scheduled to report first-quarter 2023 earnings before the opening bell on Apr 28.

The company surpassed Zacks Consensus Estimate in three of the last four quarters while missing it once, the average earnings surprise being 0.99%. It delivered an earnings surprise of 18.4% in the last reported quarter.

LYB's first-quarter results are likely to reflect soft demand due to a challenging operating environment and moderate feedstock and energy costs.

The stock has lost 13.5% in the past year compared with the industry’s decline of 3.6%.

Zacks Investment Research
Image Source: Zacks Investment Research

What Our Model Unveils

Our proven model predicts an earnings beat for LyondellBasell 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 earning beat. That is the case here.

Earnings ESP: Earnings ESP for LyondellBasell is +1.99%. This is because the Most Accurate Estimate is currently pegged at $1.84 while the Zacks Consensus Estimate stands at $1.80.  You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: LyondellBasell currently carries Zacks Rank #3.

Estimate Trend

The Zacks Consensus Estimate for the to-be-reported quarter is currently pegged at $10,355 million, which suggests a decline of 21.1% from the year-ago reported figure.

The Zacks Consensus Estimate for the Olefins and Polyolefins – Americas division’s revenues is currently pegged at $2,636 million, implying a decline of 26.7% year over year.

The consensus estimate for the Olefins and Polyolefins – Europe, Asia & International division’s revenues currently stands at $2,624 million, indicating a decline of 30.2% from the year-ago reported figure.

The Zacks Consensus Estimate for revenues of LYB’s Advanced Polymer Solutions segment for the first quarter is $1,139 million, suggesting a decline of 19.1%.

The consensus estimate for its Intermediaries and Derivatives segment is currently pegged at $2,818 million, which implies a 15.6% decline from the prior year’s levels.

The Refining segment's revenue estimate is $2,491 million, suggesting a decline of 8.4%. The consensus estimate for its Technology segment stands at $155 million, which indicates a 14.4% fall from the year-ago reported figure.

Few Factors to Note

LYB’s first-quarter earnings are likely to have been affected by demand pressures, offset by moderate feedstock and energy costs. The Olefins and Polyolefins – Americas unit is likely to have been impacted by continued demand softness, offset by lower input costs. The challenging macroeconomic environment, which is hurting consumer demand, might have weighed on the Olefins and Polyolefins – Europe, Asia & International division’s performance.

In Intermediaries and Derivatives, oxyfuel margins are expected to have remained strong on lower feedstock costs in the March quarter. The company’s Technology segment is likely to have been affected by moderate levels of revenues from licensing and lower catalyst volumes.

Other Stocks That Warrant a Look

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

Linde plc (LIN - Free Report) , which is scheduled to release earnings on Apr 27, has an Earnings ESP of +0.80% 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 Linde’s first-quarter earnings has been revised 0.97% upward in the past 60 days. The consensus estimate for LIN’s earnings for the first quarter is currently pegged at $3.12.

Osisko Gold Royalties Ltd (OR - Free Report) , which is scheduled to release earnings on May 10, has an Earnings ESP of +8.53% and carries a Zacks Rank #2.

The Zacks Consensus Estimate for Osisko’s first-quarter earnings has been stable in the past 60 days. The consensus estimate for OR’s earnings for the first quarter is currently pegged at 11 cents.

Pan American Silver (PAAS - Free Report) , which is scheduled to release earnings on May 10, has an Earnings ESP of +167.10% and carries a Zacks Rank #2.

The Zacks Consensus Estimate for Pan American Silver’s first-quarter earnings has been revised 66.7%  upward in the past 60 days. The consensus estimate for PAAS’ earnings for the first quarter is currently pegged at 5 cents.

 

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


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in