AdvanSix Inc. ASIX is scheduled to release fourth-quarter 2024 results before the opening bell on Feb. 21.
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The company surpassed Zacks Consensus Estimate for earnings in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of around 18.9% on average. ASIX pulled off an earnings surprise of 33.3% in the last reported quarter.
ASIX stock has gained 5% in the past year compared with the Zacks Chemicals Specialty industry’s 17.8% decline.
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Let’s see how things are shaping up for this announcement.
What Do ASIX’s Revenue Estimates Say?
The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $377.1 million, which implies a decline of around 1.3% from the year-ago reported number.
The consensus estimate for Nylon sales is pegged at $81 million, suggesting a rise of 3.5% year over year. The same for Caprolactam sales is $77 million, indicating a decline of 6.7%.
The Zacks Consensus Estimate for Ammonium Sulfate sales is pinned at $94 million, suggesting a year-over-year decline of 13.5%. The same for Chemical Intermediates sales stands at $103 million, indicating a decrease of 8.7% year over year.
Factors at Play for ASIX Stock
AdvanSix, which produces nylon 6 resin, chemical intermediates and ammonium sulfate fertilizer, is benefiting from its differentiated product portfolio, exposure to diverse end markets and favorable demand and pricing. It is expected to have gained from improved nylon demand conditions and the growth of its differentiated products in the fourth quarter.
While the building and construction market is a weak link due to the elevated interest rate environment, nylon demand remains firm in engineered plastics and packaging applications. The favorable agricultural industry fundamentals also bode well for ammonium sulfate.
ASIX saw higher sales for nylon and ammonium sulfate in the third quarter of 2024. Ammonium sulfate sales were driven by strong sulfur nutrition demand. Favorable pricing also supported its performance. The demand strength in sulfur nutrition is expected to have continued in the fourth quarter.
However, the company’s fourth-quarter performance is likely to have been affected by the unfavorable impact of the extended turnaround. ASIX, on its third-quarter call, said that it sees a roughly $17 million unfavorable impact to pre-tax income in the fourth quarter resulting from an additional required maintenance and a delayed ramp to full operating rates at its Hopewell site following a plant turnaround.
AdvanSix Price and EPS Surprise
AdvanSix price-eps-surprise | AdvanSix Quote
What Our Model Unveils for ASIX
Our proven model does not conclusively predict an earnings beat for AdvanSix this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for ASIX is -9.59%. The Zacks Consensus Estimate for the fourth quarter is currently pegged at a loss of 37 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ASIX currently carries a Zacks Rank #3.
Basic Materials Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Cameco Corporation CCJ, slated to release earnings on Feb. 20, has an Earnings ESP of +9.29% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for CCJ’s fourth-quarter earnings is currently pegged at 23 cents.
Franco-Nevada Corporation FNV, slated to release earnings on March 10, has an Earnings ESP of +0.39% and carries a Zacks Rank #3 at present.
The consensus mark for FNV’s fourth-quarter earnings is currently pegged at 89 cents.
IAMGOLD Corporation IAG, scheduled to release fourth-quarter earnings on Feb. 20, has an Earnings ESP of +4.76%.
The Zacks Consensus Estimate for IAMGOLD’s earnings for the fourth quarter is currently pegged at 14 cents. IAG currently carries a Zacks Rank #3.
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