In its upcoming report, Westlake Chemical (WLK) is predicted by Wall Street analysts to post quarterly earnings of $0.70 per share, reflecting a decline of 47.8% compared to the same period last year. Revenues are forecasted to be $2.92 billion, representing a year-over-year decrease of 1.9%.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 9.8% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some Westlake metrics that Wall Street analysts commonly model and monitor.
The consensus estimate for 'Net external sales- Performance and Essential Materials' stands at $1.91 billion. The estimate indicates a change of -1.1% from the prior-year quarter.
The average prediction of analysts places 'Net external sales- Housing and Infrastructure Products' at $1.06 billion. The estimate indicates a year-over-year change of +2%.
The combined assessment of analysts suggests that 'Net external sales- Performance and Essential Materials- Performance Materials' will likely reach $1.12 billion. The estimate suggests a change of -3.4% year over year.
It is projected by analysts that the 'Net external sales- Performance and Essential Materials- Essential Materials' will reach $753.23 million. The estimate indicates a year-over-year change of -1.8%.
According to the collective judgment of analysts, 'Net external sales- Housing and Infrastructure Products- Housing Products' should come in at $883.99 million. The estimate indicates a year-over-year change of +0.6%.
Analysts predict that the 'Net external sales- Housing and Infrastructure Products- Infrastructure Products' will reach $172.19 million. The estimate indicates a year-over-year change of +4.4%.
The collective assessment of analysts points to an estimated 'EBITDA- Housing and Infrastructure Products' of $231.71 million. Compared to the current estimate, the company reported $264 million in the same quarter of the previous year.
Based on the collective assessment of analysts, 'EBITDA- Performance and Essential Materials' should arrive at $199.94 million. The estimate compares to the year-ago value of $253 million.
View all Key Company Metrics for Westlake here>>>
Over the past month, shares of Westlake have returned -9.4% versus the Zacks S&P 500 composite's -0.7% change. Currently, WLK carries a Zacks Rank #5 (Strong Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Westlake Corp. (WLK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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