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Chemical Stock Earnings Slated on Apr 27: DOW, APD, EMN & PX

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A few major chemical companies are scheduled to report their quarterly numbers on Apr 27.  As per the Zacks Industry classification, the chemical industry is grouped under the broader Basic Materials sector. Based on the Earnings Preview as of Apr 21, 15% of the sector participants on the S&P 500 index have reported their quarterly numbers. Earnings for these companies increased a solid 41.9% from the same period last year on 12.9% higher revenues.

The Basic Materials sector is one of the only three sectors that are projected to witness double-digit earnings growth in the first quarter. Overall earnings for the sector are projected to rise 11% while revenues are expected to increase 2.1%.

The chemical industry is finally back on track after bearing the brunt of the global economic crisis. While the industry remains saddled by several challenges including concerns over China’s economy and weak demand in the energy space, its upturn is expected to continue this year on sustained healthy momentum in the automotive space and an upswing in the housing market.

Strategic initiatives including continued focus on cost and productivity, operational efficiency improvement and expansion of scale through acquisitions should also help chemical makers weather macroeconomic and industry-specific headwinds in 2017.

We take a sneak peek into four chemical companies that are gearing up to report quarterly results on Apr 27.

The Dow Chemical Company (DOW - Free Report) will report first-quarter results ahead of the bell. The company has an Earnings ESP of -4.04% as the Most Accurate Estimate stands at 95 cents while the Zacks Consensus Estimate is pegged at 99 cents. Although the stock carries a favorable Zacks Rank #3 (Hold), its negative ESP makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The U.S. chemical kingpin has an impressive surprise history, having surpassed the Zacks Consensus Estimate in all the trailing four quarters with an average beat of 11.31%. Dow remains committed to its productivity improvement and portfolio management actions. While pricing and feedstock cost pressure and challenges in the agriculture market remain as headwinds, the company's cost control and growth actions are expected to support earnings in the to-be-reported quarter. (Read more: Dow Chemical Q1: Can it Sustain the Earnings Streak?)

Air Products and Chemicals, Inc. (APD - Free Report) will report fiscal second-quarter results ahead of the bell. The company is expected to come up with a positive earnings surprise as it carries a Zacks Rank #2 (Buy) and has an Earnings ESP of +0.73%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Air Products surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 0.49%. The company’s cost-control measures, synergies from acquisitions and sustained pricing power should support its earnings in the to-be-reported quarter. (Read more: Air Products Q2 Earnings: Is a Beat in the Cards?)

Eastman Chemical Company (EMN - Free Report) will report first-quarter results after the close. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.74. While the stock carries a Zacks Rank #3, its 0.00% ESP makes surprise prediction difficult.

Eastman Chemical surpassed the Zacks Consensus Estimate in three of the trailing four quarters with an average beat of 5.99%. While Eastman Chemical faces pricing and currency headwinds, it should gain from synergies of acquisitions, cost-cutting actions and continued momentum in its specialty businesses. (Read more: Eastman Chemical Q1 Earnings: What's in the Cards?)

Eastman Chemical Company Price and EPS Surprise

 

Eastman Chemical Company Price and EPS Surprise | Eastman Chemical Company Quote

Praxair Inc. (PX - Free Report) will report first-quarter results before the bell.  It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.33. While the stock carries a Zacks Rank #2, its 0.00% ESP makes surprise prediction difficult.

The company posted better-than-expected results in three of the last four quarters and in-line numbers in one. Average earnings surprise was a positive 1.32% over this period. While the company is exposed to risks arising from higher production costs, stiff competition, and high debt levels, it is well positioned to leverage benefits from its diversified product portfolio, a large client base and organic and inorganic growth strategies. (Read more: What's in the Cards for Praxair this Earnings Season?)

Praxair, Inc. Price and EPS Surprise

 

Praxair, Inc. Price and EPS Surprise | Praxair, Inc. Quote

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