Uncovering Potential: Olin's Earnings Preview

Olin OLN will release its quarterly earnings report on Thursday, 2024-10-24. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Olin to report an earnings per share (EPS) of $0.08.

The announcement from Olin is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Overview of Past Earnings

During the last quarter, the company reported an EPS missed by $0.08, leading to a 7.18% drop in the share price on the subsequent day.

Here's a look at Olin's past performance and the resulting price change:

Olin Share Price Analysis

Shares of Olin were trading at $45.76 as of October 22. Over the last 52-week period, shares are down 1.6%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analysts' Perspectives on Olin

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Olin.

With 12 analyst ratings, Olin has a consensus rating of Neutral. The average one-year price target is $51.92, indicating a potential 13.46% upside.

Peer Ratings Comparison

The analysis below examines the analyst ratings and average 1-year price targets of Cabot, Hawkins and Tronox Holdings, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Neutral trajectory for Cabot, with an average 1-year price target of $101.5, indicating a potential 121.81% upside.
• As per analysts' assessments, Hawkins is favoring an Neutral trajectory, with an average 1-year price target of $122.0, suggesting a potential 166.61% upside.
• The consensus among analysts is an Buy trajectory for Tronox Holdings, with an average 1-year price target of $18.5, indicating a potential 59.57% downside.

Summary of Peers Analysis

In the peer analysis summary, key metrics for Cabot, Hawkins and Tronox Holdings are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Olin ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. Olin is at the top for Return on Equity.

All You Need to Know About Olin

Olin Corp manufactures and sells a variety of chemicals and chemical-based products. The company organizes itself into three segments based on the product type. The Chlor alkali products and Vinyls segment, which generates the majority of revenue, sells chlorine and caustic soda, which are used in a variety of industries including cosmetics, textiles, crop protection, and fire protection products. The Epoxy segment sells epoxy resins used in paints and coatings. The Winchester segment sells sporting ammunition and ammunition accessories under the Winchester brand. The majority of revenue comes from the United States.

Unraveling the Financial Story of Olin

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Olin's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -3.45%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Net Margin: Olin's net margin is impressive, surpassing industry averages. With a net margin of 4.51%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.44%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Olin's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.97%, the company showcases efficient use of assets and strong financial health.

Debt Management: Olin's debt-to-equity ratio is below the industry average. With a ratio of 1.52, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Olin visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.