Stepan(US:SCL) ZACKS·2025-02-12 16:06Core Viewpoint - The market anticipates Stepan Co. (SCL) to report a year-over-year earnings increase despite lower revenues for the quarter ended December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Stepan Co. is expected to post quarterly earnings of $0.35 per share, reflecting a year-over-year increase of +6.1%, while revenues are projected to be $512.55 million, down 3.7% from the previous year [3]. - The consensus EPS estimate has been revised 20% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [10][11]. - The stock currently holds a Zacks Rank of 4 (Sell), making it challenging to predict a positive earnings surprise [11]. Historical Performance - In the last reported quarter, Stepan Co. exceeded expectations by delivering earnings of $1.03 per share against an expected $0.64, resulting in a surprise of +60.94% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [13]. Industry Context - Chemours (CC), another player in the Zacks Chemical - Diversified industry, is expected to report earnings of $0.10 per share, indicating a year-over-year decline of -67.7%, with revenues projected at $1.36 billion, down 0.1% [17]. - The consensus EPS estimate for Chemours has been revised 8.9% lower in the last 30 days, but a higher Most Accurate Estimate results in an Earnings ESP of 25.00%, despite also holding a Zacks Rank of 4 [18].