LyondellBasell Industries N.V. (LYB), with a market capitalization of $24.5 billion, is a leading chemical company. It produces plastics, chemicals, and fuel products, serving industries such as personal care, fresh food packaging, lightweight plastics, construction, and automotive manufacturing, among others. The Texas-based company expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Friday, Jan. 31.
Ahead of the event, analysts expect LYB to report a profit of $0.81 per share on a diluted basis, down 35.7% from $1.26 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect LYB to report EPS of $6.48, down 25.1% from $8.65 in fiscal 2023. However, its EPS is expected to rise 17.3% year over year to $7.60 in fiscal 2025.
LYB shares have plummeted 19.4% over the past year, substantially lagging behind the S&P 500’s ($SPX) 24.4% gains and the Materials Select Sector SPDR Fund’s (XLB) 4.3% gains over the same time frame.
On Nov. 1, LyondellBasell announced its third-quarter earnings, which led to a 2.7% decline in the next trading session. Its sales dipped 2.9% year-over-year to $10.32 billion, with adjusted EPS plunging 23.6% to $1.88. Further, the company forecasts weaker Q4 demand due to seasonality and rising feedstock costs.
Analysts’ consensus opinion on LYB stock is skeptical, with a “Hold” rating overall. Out of 19 analysts covering the stock, four advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, 11 give a “Hold” rating, and two recommend a “Strong Sell.”
LYB’s average analyst price target is $88.06, indicating a potential upside of 15.7% from the current levels.
