LyondellBasell Industries Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component LyondellBasell Industries NV (NYSE:LYB) will unveil its latest earnings tomorrow, Friday, February 1, 2013.  Lyondellbasell Industries is an independent chemical company. It is a producer of polypropylene and polypropylene compounds (PP compounds) and a producer of propylene oxide (PO), polyethylene (PE), ethylene, and propylene.

LyondellBasell Industries NV Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.12 per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.06. Between one and three months ago, the average estimate moved up. It has risen from $1.10 during the last month. Analysts are projecting profit to rise by 10.6% compared to last year’s $5.21.

Past Earnings Performance: Last quarter, the company missed estimates by 8 cents, coming in at profit of $1.36 per share versus a mean estimate of net income of $1.44 per share. In the first quarter, the company beat estimates by 25 cents.

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A Look Back: In the second quarter, profit fell 4.2% to $770 million ($1.33 a share) from $804 million ($1.38 a share) the year earlier, missing analyst expectations. Revenue fell 19.9% to $11.25 billion from $14.04 billion.

Here’s how LyondellBasell Industries¬†traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.91 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 3% in the first quarter and dropped again in the second quarter.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)