Houston, Texas-based LyondellBasell Industries N.V. (LYB) is a chemical company that produces and markets olefins and co-products, oxyfuels and related products, and intermediate chemicals, such as styrene monomer, acetyls, and ethylene oxide. Valued at a market cap of $18.4 billion, the company’s products are used in electronics, automotive parts, packaging, construction materials and biofuels. It is expected to announce its fiscal Q1 earnings for 2025 before the market opens on Friday, Apr. 25.
Prior to this event, analysts project this specialty chemicals company to report a profit of $0.43 per share, down 71.9% from $1.53 per share in the year-ago quarter. The company has met or surpassed Wall Street's bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $0.75 per share in the previous quarter came in-line with the consensus estimates.
For the full year, analysts expect LYB to report EPS of $5.15, down 19.5% from $6.40 in fiscal 2024. Nonetheless, its EPS is expected to rebound, growing by 30.3% year over year to $6.71 in fiscal 2026.
LYB has declined 44.7% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 3.2% gain, and the Materials Select Sector SPDR Fund’s (XLB) 12.1% downtick over the same time frame.
On Jan. 31, shares of LYB closed down marginally after its Q4 earnings release. On the downside, the company reported a 4.4% year-over-year decline in sales and operating revenue to $9.5 billion. Its adjusted earnings also dropped heavily, falling by 40.5% to $0.75 per share. The decline was largely due to margin pressure across most segments, driven by higher costs for NGL feedstocks and natural gas, while product prices remained subdued due to seasonally weaker demand. Despite these challenges, the company delivered strong cash performance, which helped cushion the impact of the weak results. Additionally, solid export demand for North American polyethylene and a rebound in domestic polyolefin demand after two years of decline, might have provided further support.
Wall Street analysts are cautious about LYB’s stock, with a "Hold" rating overall. Among 19 analysts covering the stock, three recommend "Strong Buy," one advises a “Moderate Buy,” 12 suggest “Hold,” and three indicate “Strong Sell” rating. The mean price target for LYB is $74.15, which indicates a 30.3% potential upside from the current levels.
