Huntsman Earnings: Here’s Why Investors are Not Excited Now

Huntsman Corporation (NYSE:HUN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4%.

Huntsman Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 65.71% to $0.24 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Decreased 0.49% to $2.62 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Huntsman Corporation reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.23. It beat the average revenue estimate of $2.49 billion.

Quoting Management: Peter R. Huntsman, President and CEO, commented: “Our 2012 adjusted EBITDA of $1.4 billion represents record earnings for our current configuration of businesses. I am very enthusiastic about the direction in which the company is headed. Within our largest division – Polyurethanes – our MDI business is growing at attractive rates, and future prospects are pointing towards tighter market conditions. In the fourth quarter, I was pleased to see that our smallest division – Textile Effects – recorded positive earnings as a result of our restructuring and cost cutting efforts. Our Pigments division is going through a business cycle where we expect an improvement in earnings beginning in the second half of 2013.”

Key Stats (on next page)…

Revenue decreased 4.45% from $2.74 billion in the previous quarter. EPS decreased 65.71% from $0.70 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.42 to a profit $0.35. For the current year, the average estimate has moved down from a profit of $2.33 to a profit of $2.25 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)