Germany’s BASF, the world’s largest chemical company, announced on September 22 that Q3 profits will come in better than expected, bolstered by strength in Asia.
Earlier on September 16, US-based Eastman Chemical gave a heads up on higher-than-expected Q3 profits as pricing remained solid and volumes did not drop seasonally as much as anticipated.
In the US, Wall Street analysts are mostly ratcheting up Q3 earnings estimates for chemical companies.
BB&T Capital Markets analyst Frank Mitsch on September 29 raised his Q3 earnings per share (EPS) estimate on Huntsman by a nickel to $0.20. He said the company is seeing a 7%-plus growth rate in polyurethanes globally and operating rates have moved from the mid-70% range to around 80%.
Other analysts have boosted profit forecasts for Dow Chemical, Albemarle, and Cytec Industries, while trimming estimates for Ashland and H.B. Fuller.
Look for a further bump-up in Wall Street’s Q3 earnings estimates as well as upside surprises. Say goodbye to the summer and the slowdown.
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