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Olin's (OLN) Earnings and Revenues Beat Estimates in Q1
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Olin Corporation (OLN - Free Report) posted earnings of 40 cents per share in first-quarter 2024, down from $1.16 per share in the year-ago quarter. The metric topped the Zacks Consensus Estimate of 36 cents.
The chemical maker’s revenues fell nearly 11.3% year over year to $1,635.5 million in the quarter but beat the Zacks Consensus Estimate of $1,624.8 million.
Olin Corporation Price, Consensus and EPS Surprise
Chlor Alkali Products and Vinyls: In the first quarter, revenues amounted to $884.6 million, down around 20.9% year over year. The figure missed the Zacks Consensus Estimate of $913 million. The downside was mainly caused by lower prices, especially for caustic soda and reduced sales volumes.
Epoxy: The division’s revenues declined around 5.3% year over year to $341.3 million, driven by lower pricing despite a rise in volumes. The figure surpassed the consensus estimate of $325 million. The downtick was primarily due to lower prices, partially counterbalanced by increased volumes and reduced raw material and operating costs.
Winchester: Revenues rose around 11.7% year over year to $409.4 million, beating the consensus estimate of $395 million. Winchester sales rose mainly because of increased shipments of commercial ammunition, higher military sales both domestically and internationally and growth in White Flyer sales.
Financials
Olin had a cash balance of $150.9 million as of Mar 31, 2024. The company had a net debt of roughly $2.6 billion and a net debt-to-adjusted EBITDA ratio of 2.3x. As of Mar 31, 2024, It had around $1.2 billion in available liquidity.
In the first quarter, the company repurchased around 2 million shares of common stock for $105.4 million. OLN had approximately $0.9 billion available under its share repurchase program as of Mar 31, 2024.
Outlook
The company expects the momentum to continue into the second quarter of 2024, with demand and pricing showing positive trends. The Chemical businesses are likely to experience sequential growth compared with first-quarter 2024 levels, while the Winchester business is forecast to maintain its first-quarter performance, offsetting a less favorable product mix and higher raw material costs with increased military volumes. Overall, Olin projects that its adjusted EBITDA for the second quarter will be higher than first-quarter levels. Based on current forecasts for demand and pricing in the Chemical businesses, the company expects full-year 2024 adjusted EBITDA to be on par with or slightly above the 2023 level.
Price Performance
The stock has declined 2.6% in the past year compared with a 7.2% fall of the industry.
The consensus estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The Zacks Consensus Estimate for GFI’s first-quarter earnings has been stable in the past 60 days. The company’s shares have increased 16% in the past year.
CRS is slated to report fiscal third-quarter results on May 1. The consensus estimate for CRS’ fiscal third-quarter earnings is pegged at 94 cents per share, indicating a year-over-year surge of 147.4%. CRS beat on earnings in three of the last four quarters, delivering an average surprise of 12.2%. The company’s shares have risen 62.3% in the past year.
Ingevity is slated to report first-quarter results on May 1. The consensus estimate for NGVT’s first-quarter earnings is pegged at 37 cents per share. NGVT has a trailing four-quarter earnings surprise of 61.8%, on average.
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Olin's (OLN) Earnings and Revenues Beat Estimates in Q1
Olin Corporation (OLN - Free Report) posted earnings of 40 cents per share in first-quarter 2024, down from $1.16 per share in the year-ago quarter. The metric topped the Zacks Consensus Estimate of 36 cents.
The chemical maker’s revenues fell nearly 11.3% year over year to $1,635.5 million in the quarter but beat the Zacks Consensus Estimate of $1,624.8 million.
Olin Corporation Price, Consensus and EPS Surprise
Olin Corporation price-consensus-eps-surprise-chart | Olin Corporation Quote
Segment Review
Chlor Alkali Products and Vinyls: In the first quarter, revenues amounted to $884.6 million, down around 20.9% year over year. The figure missed the Zacks Consensus Estimate of $913 million. The downside was mainly caused by lower prices, especially for caustic soda and reduced sales volumes.
Epoxy: The division’s revenues declined around 5.3% year over year to $341.3 million, driven by lower pricing despite a rise in volumes. The figure surpassed the consensus estimate of $325 million. The downtick was primarily due to lower prices, partially counterbalanced by increased volumes and reduced raw material and operating costs.
Winchester: Revenues rose around 11.7% year over year to $409.4 million, beating the consensus estimate of $395 million. Winchester sales rose mainly because of increased shipments of commercial ammunition, higher military sales both domestically and internationally and growth in White Flyer sales.
Financials
Olin had a cash balance of $150.9 million as of Mar 31, 2024. The company had a net debt of roughly $2.6 billion and a net debt-to-adjusted EBITDA ratio of 2.3x. As of Mar 31, 2024, It had around $1.2 billion in available liquidity.
In the first quarter, the company repurchased around 2 million shares of common stock for $105.4 million. OLN had approximately $0.9 billion available under its share repurchase program as of Mar 31, 2024.
Outlook
The company expects the momentum to continue into the second quarter of 2024, with demand and pricing showing positive trends. The Chemical businesses are likely to experience sequential growth compared with first-quarter 2024 levels, while the Winchester business is forecast to maintain its first-quarter performance, offsetting a less favorable product mix and higher raw material costs with increased military volumes. Overall, Olin projects that its adjusted EBITDA for the second quarter will be higher than first-quarter levels. Based on current forecasts for demand and pricing in the Chemical businesses, the company expects full-year 2024 adjusted EBITDA to be on par with or slightly above the 2023 level.
Price Performance
The stock has declined 2.6% in the past year compared with a 7.2% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Olin currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Gold Fields Limited (GFI - Free Report) and Ingevity Corporation (NGVT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Carpenter Technology Corporation (CRS - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The Zacks Consensus Estimate for GFI’s first-quarter earnings has been stable in the past 60 days. The company’s shares have increased 16% in the past year.
CRS is slated to report fiscal third-quarter results on May 1. The consensus estimate for CRS’ fiscal third-quarter earnings is pegged at 94 cents per share, indicating a year-over-year surge of 147.4%. CRS beat on earnings in three of the last four quarters, delivering an average surprise of 12.2%. The company’s shares have risen 62.3% in the past year.
Ingevity is slated to report first-quarter results on May 1. The consensus estimate for NGVT’s first-quarter earnings is pegged at 37 cents per share. NGVT has a trailing four-quarter earnings surprise of 61.8%, on average.