A couple of companies in the chemical space are slated to report their quarterly results this week. The chemical industry falls under the broader Basic Materials sector. Based on the earnings scorecard as of Feb 10, 75% of the sector participants on the S&P 500 index have already reported their quarterly numbers. Earnings for these companies increased 7.3% from the same period last year while revenues have increased by a paltry 0.1%, per the latest Earnings Preview . Overall earnings for the Basic Materials sector are now projected to rise 5.3% while revenues are expected to slip 3.2%.
The chemical industry is still on a gradual recovery mode from the trough of the Great Recession. Chemical makers continue to shift their focus to attractive, growth markets in an effort to cut their exposure on businesses that are struggling with weak demand. They are also looking for cost synergy and enhanced operational scale through consolidations as exhibited by a wide swath of deals in the recent past. Strategic actions including cost management and productivity improvement also remain the prime focus of these companies.
However, the industry remains hamstrung by a number of headwinds including a still weak agriculture market, currency headwinds, weak demand in the energy space and a sluggish Chinese economy.
Let's see what's in store for these two chemical companies that are slated to report fourth-quarter numbers this week.
Innospec Inc.IOSP will report results after the bell on Feb 14. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 90 cents. This makes surprise prediction difficult even though the company carries a favorable Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The company beat estimates in three of the trailing four quarters while missed once. In this timeframe, it delivered an average negative surprise of 8.80%.
Innospec Inc. Price and EPS Surprise
Innospec Inc. Price and EPS Surprise | Innospec Inc. Quote
Israel Chemicals Ltd.ICL will report earnings numbers before the bell on Feb 15. It has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 8 cents. The company carries a Zacks Rank #4 (Sell), which coupled with a 0.00% 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 company beat estimates in two of the trailing four quarters while missing once and reporting in line on the other occasion. The average is a positive surprise of 15.28%.
Israel Chemicals Shs Price and EPS Surprise
Israel Chemicals Shs Price and EPS Surprise | Israel Chemicals Shs Quote
Zacks' Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Innospec Inc. (IOSP): Free Stock Analysis Report
Israel Chemicals Shs (ICL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
