Market Overview

Earnings Outlook for LyondellBasell Industries

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On Friday, October 30, LyondellBasell Industries (NYSE: LYB) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts expect LyondellBasell Industries earnings of $1.12 per share. Revenue will likely be around $6.73 billion, according to the consensus estimate. LyondellBasell Industries reported a profit of $2.6 per share when it published results during the same quarter last year. Sales in that period totaled $8.72 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 56.92% decline in the company's earnings. Revenue would have fallen 22.84% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.65 1.50 2.25 2.76
EPS Actual 0.68 1.47 1.92 2.60
Revenue Estimate 5.66 B 7.60 B 8.46 B 9.07 B
Revenue Actual 5.55 B 7.49 B 8.18 B 8.72 B

Stock Performance

Over the last 52-week period, shares are down 25.3%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. LyondellBasell Industries is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: Earnings