Markets

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

LyondellBasell Industries N.V. LYB is set to release second-quarter 2020 results on Jul 31, before the opening bell.

The company has a trailing four-quarter negative earnings surprise of 3.4%, on average. Lower crude oil pricing and the coronavirus pandemic are likely to have impacted LyondellBasell’s performance in the second quarter.

The stock has lost 19.9% in the past year compared with 5.7% decline of the industry.

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

What Does the Zacks Model Say?

Our proven model predicts an earnings beat for LyondellBasell this time around. 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. 

Earnings ESP: Earnings ESP for LyondellBasell is +3.22%. The Most Accurate Estimate and the Zacks Consensus Estimate are currently pegged at 63 cents and 61 cents, respectively. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

What to Expect in Q2

In May, the company stated that it expects low crude oil pricing, the coronavirus pandemic and a slowing economy to affect its business in the second quarter. The company’s order books for April and May indicate strong ongoing demand for its polyolefins in medical and consumer packaging applications. Demand for industrial and durable products markets are expected to have remained weak in the to-be-reported quarter. Moreover, weaker demand for transportation fuels are likely to have impacted the Refining and Oxyfuels & Related Products businesses.

What do the Estimates Indicate?

The Zacks Consensus Estimate for second-quarter consolidated sales is pegged at $5,776 million, which calls for a decline of 36.2% year over year. 

The Zacks Consensus Estimate for sales in the LyondellBasell’s Olefins & Polyolefins — Americas unit is currently pegged at $1,586 million, which calls for a sequential decline of 11.5%.

The Zacks Consensus Estimate for sales in the Olefins & Polyolefins — Europe, Asia, International segment currently stands at $1,769 million, which suggests a sequential decline of 20.5%.

The consensus mark for sales in the Intermediates and Derivatives segment is currently pegged at $1,331 million, which calls for a sequential drop of 24.8%.

The Zacks Consensus Estimate for sales in the Refining segment is currently at $1,032 million, which indicates a sequential fall of 28.7%.

The consensus mark for sales in the Technology segment is currently pegged at $159 million, which suggests a sequential rise of 30.3%.

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

Other Stocks to Consider

Here are some other companies that you may want to consider as our model shows that they also have the right combination of elements to post an earnings beat this quarter:

Barrick Gold Corporation GOLD, scheduled to release second-quarter 2020 earnings on Aug 10, has an Earnings ESP of +0.54% and carries a Zacks Rank #3.

FMC Corporation FMC, slated to release second-quarter 2020 earnings on Aug 4, has an Earnings ESP of +1.13% and a Zacks Rank #3.

Pan American Silver Corp. PAAS, scheduled to release second-quarter 2020 results on Aug 5, has an Earnings ESP of +23.81% and carries a Zacks Rank #3.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>


Click to get this free report

FMC Corporation (FMC): Free Stock Analysis Report

Barrick Gold Corporation (GOLD): Free Stock Analysis Report

LyondellBasell Industries N.V. (LYB): Free Stock Analysis Report

Pan American Silver Corp. (PAAS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More