A Peek at Westlake's Future Earnings
Westlake (NYSE:WLK) is gearing up to announce its quarterly earnings on Friday, 2025-05-02. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Westlake will report an earnings per share (EPS) of $0.96.
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.
Earnings History Snapshot
The company's EPS missed by $1.03 in the last quarter, leading to a 2.34% increase in the share price on the following day.
Here's a look at Westlake's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.09 | 2.20 | 1.99 | 1.02 |
| EPS Actual | 0.06 | 1.41 | 2.40 | 1.34 |
| Price Change % | 2.0% | 3.0% | -0.0% | 0.0% |
Stock Performance
Shares of Westlake were trading at $92.43 as of April 30. Over the last 52-week period, shares are down 39.2%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Insights on Westlake
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Westlake.
The consensus rating for Westlake is Buy, based on 16 analyst ratings. With an average one-year price target of $125.75, there's a potential 36.05% upside.
Peer Ratings Overview
The below comparison of the analyst ratings and average 1-year price targets of Cabot, Hawkins and Olin, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Cabot, with an average 1-year price target of $84.0, suggesting a potential 9.12% downside.
- Analysts currently favor an Buy trajectory for Hawkins, with an average 1-year price target of $141.0, suggesting a potential 52.55% upside.
- Analysts currently favor an Neutral trajectory for Olin, with an average 1-year price target of $29.56, suggesting a potential 68.02% downside.
Peers Comparative Analysis Summary
The peer analysis summary offers a detailed examination of key metrics for Cabot, Hawkins and Olin, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Westlake | Buy | 0.60% | $328M | 0.07% |
| Cabot | Neutral | -0.31% | $235M | 6.59% |
| Hawkins | Buy | 8.49% | $48.42M | 3.34% |
| Olin | Neutral | 3.51% | $157.90M | 0.52% |
Key Takeaway:
Westlake ranks at the top for Revenue Growth with 0.60%. It is in the middle for Gross Profit at $328M. Westlake is at the bottom for Return on Equity with 0.07%.
Discovering Westlake: A Closer Look
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.
Understanding the Numbers: Westlake's Finances
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Growth: Over the 3 months period, Westlake showcased positive performance, achieving a revenue growth rate of 0.6% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Materials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Westlake's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 0.25%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Westlake's ROE stands out, surpassing industry averages. With an impressive ROE of 0.07%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Westlake's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.03%, the company showcases efficient use of assets and strong financial health.
Debt Management: Westlake's debt-to-equity ratio is below the industry average. With a ratio of 0.5, 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 Westlake visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.