LyondellBasell Industries NV (LYB)’s Earnings May Come Above Predictions

LyondellBasell Industries NV (NYSE:LYB) will disclose its financial results for the December quarter on Tuesday before the market opens. There was also a sense of belief that the company’s earnings might top expectations since analysts’ have revised their expectations twice in the last one-month period.

During a conference call after the September quarter results, LyondellBasell Industries NV (NYSE:LYB) management indicated that they were not likely to face any significant pricing issue in the fourth quarter. The company also said that its Olefins & Polyolefins would continue to perform very well in the fourth quarter.

Revenue Generation

As far as the company was concerned, Olefins & Polyolefins was the primary revenue generation with more than 60% coming from it in the September quarter. The company was having two bases for reporting purposes. One was the Americas, and the other was Europe, Asia, and International.

LyondellBasell Industries NV (NYSE:LYB)’s America contributions from Olefins & Polyolefins was about 31%, up from 30.4% with revenue growth of 15.6% over the year-ago September quarter. Similarly, contributions from Europe, Asia and International were also more than 60% with a revenue uptick of 5.1%.

The company has a division of refining, which would have faced pressure in the face of global oil price drop. The division, which witnessed a drop in revenue in September quarter, would also likely to follow the trend in the December quarter too as the price realization dropped for oil and gasoline.

Earnings Expectations

There appeared to be some concerns among the street analysts because they have first reduced their EPS expectations to $2.13 a share from $2.14 a share one month ago. This was later not only restored but lifted to $2.15 a share one week ago. This could suggest that analysts’ seems to be bullish on the results.

Wall Street analysts’ predict LyondellBasell Industries NV (NYSE:LYB) to earn $2.15 a share on revenue of $10.85 billion for the fourth quarter. In 2013-fourth quarter, the company earned $2.11 a share and generated revenue of $11.14 billion. In the last four quarters, the company’s earnings came in more than the Street predictions thrice.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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