Core Viewpoint - Westlake Chemical (WLK) is expected to report quarterly earnings of $1.04 per share, reflecting a 44.4% increase year-over-year, with revenues projected at $2.89 billion, a 2.4% increase from the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 0.9% over the past 30 days, indicating analysts' reassessment of their projections [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Projections - Analysts predict 'Net external sales- Performance and Essential Materials' will reach $1.88 billion, a 0.1% increase from the prior year [5]. - The consensus for 'Net external sales- Housing and Infrastructure Products' is estimated at $986.27 million, reflecting a 4.3% increase year-over-year [5]. - For 'Net external sales- Housing and Infrastructure Products- Housing Products', the estimate stands at $827.85 million, indicating a 4.1% year-over-year change [6]. - 'Net external sales- Performance and Essential Materials- Essential Materials' is projected at $826.41 million, showing a 6.9% increase from the previous year [6]. - 'Net external sales- Housing and Infrastructure Products- Infrastructure Products' is expected to reach $151.67 million, a 0.4% increase year-over-year [7]. - 'Net external sales- Performance and Essential Materials- Performance Materials' is estimated at $1.15 billion, reflecting a 3.5% increase from the prior year [7]. EBITDA Estimates - The consensus estimate for 'EBITDA- Housing and Infrastructure Products' is projected at $150.48 million, down from $173 million in the previous year [8]. Stock Performance - Westlake shares have decreased by 2.3% over the past month, contrasting with a 4.7% increase in the Zacks S&P 500 composite, and the company holds a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [8].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Westlake Chemical, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Westlake Chemical is expected to report quarterly earnings of $1.04 per share, reflecting a year-over-year increase of 44.4% [3]. - Revenues are projected to reach $2.89 billion, marking a 2.4% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.93% higher in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP reading suggests a potential earnings beat, particularly when combined with a strong Zacks Rank [8]. Earnings Surprise Prediction - The Most Accurate Estimate for Westlake is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.55%, indicating bearish sentiment among analysts [10][11]. - Westlake currently holds a Zacks Rank of 4, complicating predictions for an earnings beat [11]. Historical Performance - In the last reported quarter, Westlake was expected to earn $2.12 per share but only achieved $1.41, resulting in a surprise of -33.49% [12]. - Over the past four quarters, Westlake has beaten consensus EPS estimates twice [13]. Conclusion - Westlake does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors before making investment decisions [16].

Core Viewpoint - Westlake Chemical Partners (NYSE: WLKP) is recognized for its high dividend yield, but it is considered fairly priced at current levels [1]. Company Overview - Westlake Chemical Partners owns ethylene production plants in the U.S. [1]. - The company is appealing to investors due to its disciplined capital allocation and ability to generate exceptional returns on capital [1]. Investment Philosophy - The investment philosophy emphasizes buying high-quality stocks and businesses that can compound invested capital over long periods [1].

Investment and Strategic Initiatives - Westlake Corporation's subsidiary, Westlake Innovations, has invested in Universal Matter, Inc., which focuses on supplying high-quality and sustainable graphene and advanced materials aimed at decarbonization [1] - This investment aligns with Westlake's commitment to developing a sustainable future through enhancements in manufacturing and strategic investments in innovative technologies and startups [1] Technological Advancements - Universal Matter utilizes patented Flash Joule Heating technology, developed at Rice University, to produce tunable graphene in various morphologies [8] - This technology enables cost-effective, industrial-scale upcycling of carbon waste into high-quality graphene, facilitating its integration into downstream industrial products [8] Market Context and Performance - Westlake noted a disparity in the recovery rates from the recent decline in global manufacturing and industrial activity, but anticipates a potential acceleration in macroeconomic recovery due to fiscal and monetary support [6] - The company aims to focus on developing and launching innovative products to meet consumer demands and enhance long-term shareholder value [6] Industry Positioning - Graphene presents numerous performance and sustainability benefits applicable across Westlake's Performance & Essential Materials and Housing & Infrastructure Products business lines, indicating a strategic opportunity for collaboration with Universal Matter [5]

Product Launch - Westlake Corporation's unit, Westlake Royal Building Products, has launched Dryroll, a universal ridge vent and weather block designed to optimize roof protection and attic ventilation by exhausting heat and moisture from the roof [1] - Dryroll features rollable installation, blending smoothly with the roof and reducing unappealing field vents and roof penetrations, with aluminum sides that conform seamlessly to the roof [2] - The product offers superior airflow with 15.6 square inches of ventilation per linear foot, outperforming many other ridge vent options [2] Product Specifications - Dryroll is easy to handle and transport, available in two lightweight roll options: 11.6" wide at 3.7 pounds and 14.4" wide at 4.6 pounds, meeting IAPMO ER-2015 design specifications [3] - It is specifically designed for use with Newpoint Concrete Roof Tile and is a key component of the Westlake Royal Cool Roof System, enhancing ventilation and energy efficiency [4] - The Westlake Royal Cool Roof System can enable homes to achieve up to 22% in energy savings annually [4] Market Context - In the third-quarter call, Westlake Corporation noted a disparity in the recovery rate from the recent decline in global manufacturing and industrial activity, but expects macroeconomic recovery to potentially accelerate due to fiscal and monetary support [5] - The company plans to focus on developing and launching innovative products to meet consumer demands, enhance plant profitability, and generate long-term shareholder value [5]

Core Insights - Westlake Corporation (WLK) reported a third-quarter 2024 profit of $108 million or 83 cents per share, a significant decrease from $285 million or $2.20 per share in the same quarter last year. Adjusted earnings were $1.41 per share, missing the Zacks Consensus Estimate of $2.12 [1][2] Financial Performance - Sales for the reported quarter were $3,117 million, remaining flat year over year but below the Zacks Consensus Estimate of $3,230.6 million. Sequentially, sales declined by 3% due to a 4% drop in sales volumes, which outweighed a 1% increase in average sales prices [2] - The Performance and Essential Materials (PEM) segment saw sales increase by approximately 2% year over year to $2,019 million, surpassing the estimate of $2,017.8 million. However, PEM sales volume fell by 1% sequentially, while average sales price rose by 1% [3] - The Housing and Infrastructure Products (HIP) segment generated sales of $1,098 million, down around 4% from the previous year and below the estimate of $1,211.8 million. This decline was attributed to weaker North American residential construction activity and weather disruptions [4] Financial Position - As of September 30, 2024, Westlake had cash and cash equivalents totaling $2.9 billion, with total debt at $4.6 billion. The net cash provided by operating activities in the third quarter was $474 million, with capital expenditures amounting to $220 million [5] Outlook - The company indicated that the recovery from the recent downturn in global industrial and manufacturing activities remains uneven. However, recent monetary and fiscal stimulus could potentially accelerate macroeconomic recovery. Westlake plans to focus on developing and commercializing innovative products, improving plant profitability, and creating long-term shareholder value [6] Industry Context - Westlake currently holds a Zacks Rank of 5 (Strong Sell). In comparison, DuPont de Nemours, Inc. reported adjusted earnings of $1.18 per share, exceeding the Zacks Consensus Estimate of $1.04, and raised its full-year 2024 projections for operating EBITDA and adjusted earnings per share [7] - The Chemours Company recorded adjusted earnings of 40 cents, surpassing the Zacks Consensus Estimate of 32 cents, but expects a decline in consolidated net sales in the mid to high-single digits for the fourth quarter [8] - PPG Industries, Inc. reported third-quarter adjusted earnings per share of $2.13, missing the Zacks Consensus Estimate of $2.15, and anticipates flat organic sales and adjusted earnings per share at the lower end of the $8.15 to $8.30 range for full-year 2024 [9]

For the quarter ended September 2024, Westlake Chemical (WLK) reported revenue of $3.12 billion, up 0.1% over the same period last year. EPS came in at $1.41, compared to $2.20 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.23 billion, representing a surprise of -3.52%. The company delivered an EPS surprise of -33.49%, with the consensus EPS estimate being $2.12.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

Westlake Chemical (WLK) came out with quarterly earnings of $1.41 per share, missing the Zacks Consensus Estimate of $2.12 per share. This compares to earnings of $2.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -33.49%. A quarter ago, it was expected that this chemical company would post earnings of $1.90 per share when it actually produced earnings of $2.40, delivering a surprise of 26.32%.Over the last four quarters, t ...

Hi, I’m Taizen. As a former corporate banker, I have extensive experience in industry analysis, credit analysis and cash flow projections as well as treasury experience conducting FX and money market transactions. Such experience has helped me understand the financial market, devise investment strategies and make valuations on stocks. I encountered value investing when I read the Intelligent Investor, written by Benjamin Graham. This book was instrumental in developing my investment strategies and I highly ...

Analysts on Wall Street project that Westlake Chemical (WLK) will announce quarterly earnings of $2.04 per share in its forthcoming report, representing a decline of 7.3% year over year. Revenues are projected to reach $3.23 billion, increasing 3.7% from the same quarter last year.The current level reflects a downward revision of 6.9% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projecti ...