What to Expect from Westlake's Earnings

Westlake WLK is set to give its latest quarterly earnings report on Tuesday, 2024-11-05. Here's what investors need to know before the announcement.

Analysts estimate that Westlake will report an earnings per share (EPS) of $2.33.

Anticipation surrounds Westlake's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.41, leading to a 0.37% drop in the share price on the subsequent day.

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

Tracking Westlake's Stock Performance

Shares of Westlake were trading at $132.14 as of November 01. Over the last 52-week period, shares are up 9.9%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Westlake

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

Analysts have provided Westlake with 8 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $166.12, suggesting a potential 25.72% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of Cabot, Olin and PureCycle Technologies, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for Cabot, with an average 1-year price target of $101.5, indicating a potential 23.19% downside.
• As per analysts' assessments, Olin is favoring an Neutral trajectory, with an average 1-year price target of $49.22, suggesting a potential 62.75% downside.
• PureCycle Technologies received a Buy consensus from analysts, with an average 1-year price target of $9.33, implying a potential 92.94% downside.

Insights: Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for Cabot, Olin and PureCycle Technologies, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

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

About Westlake

Westlake Corp is a manufacturer and supplier of chemicals, polymers and building products. Its Performance and Essential Materials segment offers a wide range of essential building blocks for making products utilized in everyday living, including olefins, vinyl chemicals, polyethylene, and epoxies. Its Housing and Infrastructure Products segment produces key finished goods for building products, pipe and fittings, and global compounds businesses.

A Deep Dive into Westlake's Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Negative Revenue Trend: Examining Westlake's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -1.35% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Westlake's net margin excels beyond industry benchmarks, reaching 9.7%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Westlake's ROE stands out, surpassing industry averages. With an impressive ROE of 2.98%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Westlake's ROA stands out, surpassing industry averages. With an impressive ROA of 1.48%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Westlake's debt-to-equity ratio is below the industry average at 0.55, reflecting a lower dependency on debt financing and a more conservative financial approach.

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

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