Huntsman Corporation Shares Up 4% Following Two Major Initiatives Announcement

Huntsman Corporation, listed on the NYSE under the symbol HUN, is a global manufacturer and marketer of differentiated and specialty chemicals. The company operates in various segments, including polyurethanes, performance products, and advanced materials. As Huntsman prepares to release its quarterly earnings on February 17, 2025, analysts are closely watching the company's financial performance.

Wall Street analysts estimate that Huntsman will report a quarterly loss of $0.07 per share. However, recent projections suggest a larger loss of $0.12 per share for the quarter ending December 2024. This represents a 42.9% increase in losses compared to the same period last year. Such a significant revision in earnings estimates, down by 95.1% over the past 30 days, indicates a reevaluation by analysts, which can impact investor sentiment and stock price movements.

Despite the anticipated loss, Huntsman's revenue is projected to be approximately $1.45 billion. This aligns closely with the expected $1.46 billion, marking a 4.2% increase year-over-year. The company's price-to-sales ratio of about 0.49 suggests that the stock is valued at less than half of its sales per share, which may attract investors looking for undervalued opportunities.

Huntsman's financial metrics reveal a complex picture. The negative price-to-earnings (P/E) ratio of -24.56 and an earnings yield of approximately -4.07% highlight the company's current challenges with negative earnings. However, the debt-to-equity ratio of about 0.73 indicates a moderate level of debt, while a current ratio of approximately 1.47 suggests good liquidity to cover short-term liabilities.

The upcoming earnings report will be crucial for Huntsman. If the company surpasses earnings estimates, it could lead to a positive stock price movement. Conversely, falling short may result in a decline. The sustainability of any immediate price changes will depend on management's discussion of business conditions during the earnings call.

Huntsman Corporation, listed on the NYSE under the symbol HUN, is a global manufacturer and marketer of differentiated and specialty chemicals. The company operates in various segments, including polyurethanes, performance products, and advanced materials. As Huntsman prepares to release its quarterly earnings on February 17, 2025, analysts are closely watching the company's financial performance.

Wall Street analysts estimate that Huntsman will report a quarterly loss of $0.07 per share. However, recent projections suggest a larger loss of $0.12 per share for the quarter ending December 2024. This represents a 42.9% increase in losses compared to the same period last year. Such a significant revision in earnings estimates, down by 95.1% over the past 30 days, indicates a reevaluation by analysts, which can impact investor sentiment and stock price movements.

Despite the anticipated loss, Huntsman's revenue is projected to be approximately $1.45 billion. This aligns closely with the expected $1.46 billion, marking a 4.2% increase year-over-year. The company's price-to-sales ratio of about 0.49 suggests that the stock is valued at less than half of its sales per share, which may attract investors looking for undervalued opportunities.

Huntsman's financial metrics reveal a complex picture. The negative price-to-earnings (P/E) ratio of -24.56 and an earnings yield of approximately -4.07% highlight the company's current challenges with negative earnings. However, the debt-to-equity ratio of about 0.73 indicates a moderate level of debt, while a current ratio of approximately 1.47 suggests good liquidity to cover short-term liabilities.

The upcoming earnings report will be crucial for Huntsman. If the company surpasses earnings estimates, it could lead to a positive stock price movement. Conversely, falling short may result in a decline. The sustainability of any immediate price changes will depend on management's discussion of business conditions during the earnings call.

Huntsman (NYSE:HUN) reported its Q3 results last week, with EPS of $0.71 coming in worse than the Street estimate of $0.77. Revenue was $2.01 billion, missing the Street estimate of $2.03 billion.

The results were highlighted by the following: (1) EBITDA was in line with the mid-September preannouncement, (2) Q4 EBITDA guidance was 43% below consensus (midpoint), (3) the company announced a new European restructuring program that is expected to save $40 million or 3% of 2022 EBITDA and (4) management provided a cautiously optimistic outlook for 2023 on moderating US inflation, a rebound in Chinese demand and the beginning of stabilization in Europe.

It was a challenging quarter for the company as sharply higher energy costs in Europe, weak demand in Europe and construction-related markets and a slower-than-expected recovery in China drove EBITDA down 27% year-over-year. And with these trends continuing into Q4 coupled with customer destocking, FX headwinds and lower fixed cost absorption, the company guided Q4 EBITDA down 60% year-over-year.

Huntsman Corporation (NYSE:HUN) shares were trading almost 4% higher Wednesday morning following the company’s two announcements yesterday.

First, the company’s Board of Directors has authorized the management team to implement a strategic review (expected to begin in Q1/22) of the company’s Textile Effects Division, including a potential sale.

Second, a multi-year compensation plan (equity incentives linked to relative Total Shareholder Return and Free Cash Flow measures; incentive cash bonus program connected to the achievement of the Adjusted EBITDA margin, Optimization Program and Free Cash Flow targets) is to be designed connected to the company’s financial targets laid out at Investor Day in November.