Wall Avenue expects a year-over-year improve in earnings on greater revenues when Huntsman (HUN) stories outcomes for the quarter ended December 2024. Whereas this widely-known consensus outlook is necessary in gauging the corporate’s earnings image, a robust issue that might influence its near-term inventory worth is how the precise outcomes examine to those estimates.
The earnings report, which is anticipated to be launched on February 17, 2025, may assist the inventory transfer greater if these key numbers are higher than expectations. However, in the event that they miss, the inventory could transfer decrease.
Whereas the sustainability of the rapid worth change and future earnings expectations will largely rely upon administration’s dialogue of enterprise situations on theearnings name it is value handicapping the chance of a constructive EPS shock.
Zacks Consensus Estimate
This chemical firm is anticipated to submit quarterly lack of $0.12 per share in its upcoming report, which represents a year-over-year change of +42.9%.
Revenues are anticipated to be $1.46 billion, up 4.2% from the year-ago quarter.
Estimate Revisions Pattern
The consensus EPS estimate for the quarter has been revised 95.06% decrease during the last 30 days to the present degree. That is primarily a mirrored image of how the protecting analysts have collectively reassessed their preliminary estimates over this era.
Traders ought to remember the fact that an mixture change could not all the time replicate the course of estimate revisions by every of the protecting analysts.
Earnings Whisper
Estimate revisions forward of an organization’s earnings launch provide clues to the enterprise situations for the interval whose outcomes are popping out. Our proprietary shock prediction mannequin — the Zacks Earnings ESP (Anticipated Shock Prediction) — has this perception at its core.
The Zacks Earnings ESP compares the Most Correct Estimate to the Zacks Consensus Estimate for the quarter; the Most Correct Estimate is a newer model of the Zacks Consensus EPS estimate. The thought right here is that analysts revising their estimates proper earlier than an earnings launch have the newest info, which might doubtlessly be extra correct than what they and others contributing to the consensus had predicted earlier.
Thus, a constructive or unfavorable Earnings ESP studying theoretically signifies the doubtless deviation of the particular earnings from the consensus estimate. Nonetheless, the mannequin’s predictive energy is important for constructive ESP readings solely.
A constructive Earnings ESP is a powerful predictor of an earnings beat, significantly when mixed with a Zacks Rank #1 (Sturdy Purchase), 2 (Purchase) or 3 (Maintain). Our analysis reveals that shares with this mix produce a positive surprise nearly 70% of the time, and a strong Zacks Rank truly will increase the predictive energy of Earnings ESP.
Please notice {that a} unfavorable Earnings ESP studying isn’t indicative of an earnings miss. Our analysis reveals that it’s tough to foretell an earnings beat with any diploma of confidence for shares with unfavorable Earnings ESP readings and/or Zacks Rank of 4 (Promote) or 5 (Sturdy Promote).
How Have the Numbers Formed Up for Huntsman?
For Huntsman, the Most Correct Estimate is greater than the Zacks Consensus Estimate, suggesting that analysts have just lately turn into bullish on the corporate’s earnings prospects. This has resulted in an Earnings ESP of +7.72%.
However, the inventory at present carries a Zacks Rank of #3.
So, this mix signifies that Huntsman will almost certainly beat the consensus EPS estimate.
Does Earnings Shock Historical past Maintain Any Clue?
Whereas calculating estimates for an organization’s future earnings, analysts typically contemplate to what extent it has been in a position to match previous consensus estimates. So, it is value looking on the shock historical past for gauging its affect on the upcoming quantity.
For the final reported quarter, it was anticipated that Huntsman would submit earnings of $0.09 per share when it truly produced earnings of $0.10, delivering a shock of +11.11%.
During the last 4 quarters, the corporate has overwhelmed consensus EPS estimates thrice.
Backside Line
An earnings beat or miss is probably not the only foundation for a inventory transferring greater or decrease. Many shares find yourself dropping floor regardless of an earnings beat resulting from different elements that disappoint buyers. Equally, unexpected catalysts assist a variety of shares achieve regardless of an earnings miss.
That stated, betting on shares which might be anticipated to beat earnings expectations does improve the percentages of success. This is the reason it is value checking an organization’s Earnings ESP and Zacks Rank forward of its quarterly launch. Be certain that to make the most of our Earnings ESP Filter to uncover the perfect shares to purchase or promote earlier than they’ve reported.
Huntsman seems a compelling earnings-beat candidate. Nonetheless, buyers ought to take note of different elements too for betting on this inventory or staying away from it forward of its earnings launch.
An Business Participant’s Anticipated Outcomes
One other inventory from the Zacks Chemical – Diversified trade, Albemarle (ALB), is quickly anticipated to submit lack of $0.49 per share for the quarter ended December 2024. This estimate signifies a year-over-year change of -126.5%. Revenues for the quarter are anticipated to be $1.38 billion, down 41.6% from the year-ago quarter.
The consensus EPS estimate for Albemarle has been revised 18.2% decrease during the last 30 days to the present degree. Nonetheless, the next Most Correct Estimate has resulted in an Earnings ESP of 40.71%.
When mixed with a Zacks Rank of #3 (Maintain), this Earnings ESP signifies that Albemarle will almost certainly beat the consensus EPS estimate. During the last 4 quarters, the corporate surpassed EPS estimates simply as soon as.
Keep on prime of upcoming earnings bulletins with the Zacks Earnings Calendar.
Ought to You Spend money on Huntsman Company (HUN)?
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Zacks Funding Analysis has been dedicated to offering buyers with instruments and unbiased analysis since 1978. For greater than 1 / 4 century, the Zacks Rank stock-rating system has greater than doubled the S&P 500 with a median achieve of +24.08% per 12 months. (These returns cowl a interval from January 1, 1988 by Could 6, 2024.)
Huntsman Corporation (HUN) : Free Stock Analysis Report
Albemarle Corporation (ALB) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
