Huntsman Corp reports results for the quarter ended September 30 - Earnings Summary

What happened

Huntsman Corp reported quarterly adjusted earnings of 4 cents per share, above last year's -3 cents. Revenue rose 17.6% to $1.72 billion, beating the $1.61 billion analysts expected. However, its reported earnings per share was a loss of 10 cents, with a quarterly loss of $18 million.

Confirmed

Global impact / market context

Adjusted earnings strip out certain items, which means the 4-cent profit differs from the reported 10-cent loss. Revenue beating expectations shows stronger sales, but the gap between adjusted and reported results suggests costs or one-off items weighed on actual profit for investors to weigh.

Analyst inference

Analysts expected 7 cents of adjusted earnings, so the 4-cent result missed that mark. The average rating is hold, with 4 buys, 11 holds and 2 sells, while the $11.00 median price target sits about 9.5% above the last close of $9.95, implying modest expected upside.

Analyst inference

What to watch

1. Watch whether the 3.4% decline in the mean analyst earnings estimate over three months continues, and whether more than the one analyst in the past 30 days lowers estimates, which would signal weakening profit expectations. Confirmed
2. Watch for details on what caused the gap between adjusted earnings and the reported loss, so investors can judge whether the items are one-time costs or recurring expenses that reduce cash available. Proposed
3. Watch capital spending and costs tied to Huntsman's chemical operations, because higher expenses could keep pressure on profit per sale and explain why reported results lagged the adjusted figure. Analyst inference

Evidence

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