Chemical companies expected to beat earnings estimates in Q2 with increased demand and cost savings.

From Nasdaq.: 2024-07-22 07:51:00

Chemical companies are expected to see improved second-quarter results due to increased demand in key markets like consumer durables and construction. Companies like DuPont de Nemours (DD), Eastman Chemical (EMN), Avient Corporation (AVNT), and Westlake Corporation (WLK) are poised to beat earnings estimates. Demand slowdown in 2023 affected key markets, but with reduced inventory levels, an uptick in demand is expected in Q2. Automotive, construction, and electronics markets are showing signs of recovery. By raising prices, improving productivity, and benefiting from lower costs, chemical companies are expected to perform well in the second quarter. DD, EMN, AVNT, and WLK are good stock picks based on a favorable Zacks Rank and positive Zacks Earnings ESP. These companies have the right combination of elements to deliver an earnings surprise in the upcoming earnings season. DD’s innovative investments and strategic price increases are expected to support its performance. EMN is likely to benefit from its growth model and cost-management actions, along with pricing initiatives. WLK is expected to see strength in its Housing and Infrastructure Products segment, supported by structural cost reductions. AVNT is expected to benefit from sustainable solutions, cost-reduction actions, and improving demand in packaging and consumer markets.



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