Olin Company OLN posted a revenue of $243.6 million or $1.51 per share in first-quarter 2021 in opposition to a lack of $80 million or 51 cents per share within the year-ago quarter.
Excluding one-time gadgets, adjusted earnings for the quarter have been $1.53 per share, that beat the Zacks Consensus Estimate of $1.34.
The chemical maker’s revenues rallied roughly 35% 12 months over 12 months to $1,918.eight million within the quarter. It additionally surpassed the Zacks Consensus Estimate of $1,891.1 million. The corporate noticed larger gross sales throughout its segments within the first quarter. It benefited from larger pricing within the quarter.
Olin Company Value, Consensus and EPS Shock
Olin Company price-consensus-eps-surprise-chart | Olin Company Quote
Phase Overview
Chlor Alkali Merchandise and Vinyls: Revenues within the division rose roughly 14% 12 months over 12 months to $867 million within the reported quarter as decrease volumes have been greater than offset by larger pricing, particularly ethylene dichloride, chlorine, and chlorinated organics. Decrease working prices additionally contributed to the section’s earnings.
Epoxy: Revenues within the division went up round 38.9% 12 months over 12 months to $662.6 million on larger costs.
Winchester: Revenues greater than doubled 12 months over 12 months to $389.2 million on elevated business and navy gross sales in addition to larger business ammunition pricing.
Financials
Olin ended the primary quarter with money and money equivalents of $259.9 million, up roughly 34% 12 months over 12 months. Lengthy-term debt was $3,706 million on the finish of the quarter, up round 6.2% 12 months over 12 months.
Outlook
Olin expects adjusted EBITDA for 2021 to be between $1.eight billion and $2.1 billion.
The corporate expects its current worth hike bulletins for chlorine, epichlorohydrin, epoxy resins, bleach, ethylene dichloride, caustic soda and chlorinated organics to favorably contribute to its Chemical compounds companies within the second quarter. The corporate envisions some quantity offsets as it’s selectively promoting much less into poor-quality markets. It additionally anticipates larger upkeep prices and unabsorbed fastened manufacturing prices of roughly $40 million associated with deliberate Epoxy upkeep turnarounds within the second quarter.
Second-quarter adjusted EBITDA is projected to enhance sequentially from first-quarter 2021 ranges barring the online one-time monetary advantages from Winter Storm Uri.
Value Efficiency
Shares of Olin have surged 158.9% up to now 12 months in contrast with 59.1% rise of the trade.
Zacks Rank & Different Key Picks
Olin at the moment carries a Zacks Rank #1 (Robust Purchase).
Another top-ranked shares within the primary supplies area are Dow Inc. DOW, Nucor Company NUE and Impala Platinum Holdings Restricted IMPUY.
Dow has a projected earnings development fee of roughly 221.7% for the present 12 months. The corporate’s shares have surged 67.2% in a 12 months. It at the moment flaunts a Zacks Rank #1. You may see the whole listing of in the present day’s Zacks #1 Rank shares right here.
Nucor has an anticipated earnings development fee of round 203.6% for the present 12 months. The corporate’s shares have gained 89.9% up to now 12 months. It at the moment sports activities a Zacks Rank #1.
Impala has an anticipated earnings development fee of 197.6% for the present fiscal. The corporate’s shares have skyrocketed 224.4% up to now 12 months. It at the moment flaunts a Zacks Rank #1.
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