Olin Corporation (OLN Quick QuoteOLN - Free Report) posted a third-quarter 2024 loss of $24.9 million or loss of 21 cents per share. This compares unfavorably with a profit of $104.1 million or 82 cents per share in the year-ago quarter. The loss per share missed the Zacks Consensus Estimate of earnings of 3 cents.

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The chemical maker’s revenues fell roughly 4.9% year over year to $1,589.5 million in the quarter. It beat the Zacks Consensus Estimate of $1,571.1 million.

Olin’s Segment Review

Chlor Alkali Products and Vinyls: In the third quarter, revenues amounted to $871.6 million, down around 10.1% year over year. It beat the Zacks Consensus Estimate of $851.5 million. The third quarter segment performance was adversely impacted by lost sales related to Hurricane Beryl and lower pricing, mainly caustic soda. 

Epoxy: Revenues in the division went down around 11.3% year over year to $285.1 million on lower volumes. It missed the consensus estimate of $315.6 million. The top line decreased due to lower volumes, including Hurricane Beryl-related sales losses.

Winchester: Revenues rose around 13.8% year over year to $432.8 million. It beat the consensus estimate of $414.9 million. Sales grew due to increasing international military sales, military project revenues and White Flyer sales, slightly offset by decreasing commercial ammunition sales.

OLN’s Financials

The cash balance as of Sept. 30, 2024 was $225.9 million. At the end of the third quarter, Olin had $2.7 billion in net debt and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio of 3X. As of Sept. 30, 2024, OLN had around $1 billion in available liquidity. 

In the third quarter, the company repurchased roughly 1 million shares of common stock for $45.4 million. As of Sept. 30, 2024, Olin has approximately $0.7 billion available for share repurchase authorization.

Olin’s Q4 Outlook

The company expects lower demand for caustic soda, although global demand is gradually improving. The company anticipates a seasonal reduction in adjusted EBITDA for its Chemical businesses for the quarter, excluding the impact of Hurricane Beryl. 

OLN expects adjusted EBITDA to be between $170 million and $200 million. Olin maintains a value-focused commercial model and capital allocation approach to drive cash flows and prioritize shareholder returns.

OLN’s Price Performance

Shares of Olin have declined 2.5% in the past year against a 6.7% rise of the industry.

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OLN’s Zacks Rank & Key Picks

OLN currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth a look in the basic materials space include IAMGOLD Corporation (IAG Quick QuoteIAG - Free Report) , Agnico Eagle Mines Limited (AEM Quick QuoteAEM - Free Report) and Barrick Gold Corporation (GOLD Quick QuoteGOLD - Free Report) .

IAMGOLD is slated to report third-quarter results on Nov. 7. The Zacks Consensus Estimate for third-quarter earnings is pegged at 11 cents. IAG beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 200%. IAG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Agnico Eagle is slated to report third-quarter results on Oct. 30, after market close. The Zacks Consensus Estimate for AEM’s third-quarter earnings is pegged at 98 cents. AEM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. AEM currently carries a Zacks Rank #1.

Barrick Gold is slated to report third-quarter results on Nov. 7, before the opening bell. The consensus estimate for Barrick Gold’s third-quarter earnings is pegged at 33 cents. GOLD, carrying a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 21.2%.