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LyondellBasell (LYB) to Report Q2 Earnings: What's in Store?

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LyondellBasell Industries N.V. (LYB - Free Report) is scheduled to report second-quarter 2024 earnings on Aug 2, before the opening bell.

The company surpassed the Zacks Consensus Estimate in three of the last four quarters and missed once, the average earnings surprise being nearly 9.1%. It delivered a positive earnings surprise of 7.7% in the last reported quarter.

The stock has gained 0.5% in the past year against the industry’s decline of 10.7%.

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Let’s see how things are shaping up for this announcement. 

What Do the Estimates Say?

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $10,289.1 million, indicating a drop of approximately 0.2% from the previous year’s levels.

For the Olefins and Polyolefins – Americas division, the consensus estimate stands at $2,883.1 million, suggesting a year-over-year increase of 6%.

The same for the Olefins and Polyolefins – Europe, Asia & International division is pegged at $2,675.6 million, calling for a 2% decline from last year’s tally.

For LYB’s Advanced Polymer Solutions segment, the Zacks Consensus Estimate for second-quarter revenues is $990.1 million, suggesting a 3% rise year over year.

The consensus estimate for the Intermediaries and Derivatives segment’s revenues is pinned at $2,807.8 million, suggesting a 5.5% increase from the previous year’s levels.

The Zacks Consensus Estimate for the Refining segment's revenues is pegged at $2,125 million, indicating a decline of 13.6%. The same for the Technology segment's revenues is pegged at $155.2 million, suggesting a 1% increase from the year-ago figure.

Factors to Note

LYB’s second-quarter performance is likely to have benefited from increased seasonal demand across most business segments. In Europe, Olefins and Polymers results are expected to have improved due to firm pricing, lower energy costs and an uptick in seasonal demand. In Intermediates and Derivatives, the European propylene oxide and derivatives business has gained from logistics disruptions in the Red Sea, which have driven local demand through near-shoring, leading to higher volumes and margins — a trend that is expected to have continued into the second quarter.

In North America and the Middle East, LYB's production will be likely to have benefited from low natural gas and NGL costs compared with higher oil-based costs in other regions. The summer driving season is expected to have boosted oxyfuel and refining margins due to increased gasoline crack spreads and reduced butane costs.

LYB, on its first-quarter call, stated that it anticipates meeting market demand in the second quarter with average operating rates of 85% for global olefins and polyolefins assets and 80% for Intermediates & Derivatives assets. The company is focused on targeted stimulus activities and is vigilant for improved demand in China.

Zacks Model

Our proven model does not conclusively predict an earnings beat for LyondellBasell 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 LyondellBasell is -2.16%. The Zacks Consensus Estimate for the second quarter is currently pegged at $2.23. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: LyondellBasell currently carries a Zacks Rank #4 (Sell).

LyondellBasell Industries N.V. Price and EPS Surprise

 

LyondellBasell Industries N.V. Price and EPS Surprise

LyondellBasell Industries N.V. price-eps-surprise | LyondellBasell Industries N.V. Quote

 

Stocks That Warrant a Look

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

Hecla Mining Company (HL - Free Report) , which is slated to release earnings on Aug 6, has an Earnings ESP of +50.00% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

The consensus estimate for HL’s second-quarter earnings is currently pegged at a penny per share.

Pan American Silver Corp. (PAAS - Free Report) , slated to release earnings on Aug 7, has an Earnings ESP of +13.43% and carries a Zacks Rank #3 at present.

The Zacks Consensus Estimate for PAAS’s second-quarter earnings is pegged at 13 cents.

Axalta Coating Systems Ltd. (AXTA - Free Report) , expected to release earnings on Aug 1, has an Earnings ESP of +0.01% and carries a Zacks Rank #3 at present.

The consensus mark for AXTA’s second-quarter earnings is currently pegged at 51 cents.

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

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