Should you short it before the Earnings result? : Westlake Chemical (NYSE:WLK)

Earnings results for Westlake Chemical (NYSE:WLK)

Westlake Chemical Corporation is expected* to report earnings on 05/04/2021 before market open. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 6 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.56. The reported EPS for the same quarter last year was $0.65.

Westlake Chemical last posted its quarterly earnings data on February 22nd, 2021. The specialty chemicals company reported $0.87 EPS for the quarter, beating analysts’ consensus estimates of $0.68 by $0.19. The company had revenue of $1.97 billion for the quarter, compared to analyst estimates of $1.96 billion. Its quarterly revenue was up 4.4% on a year-over-year basis. Westlake Chemical has generated $3.26 earnings per share over the last year and currently has a price-to-earnings ratio of 31.1. Westlake Chemical has confirmed that its next quarterly earnings report will be published on Tuesday, May 4th, 2021. Westlake Chemical will be holding an earnings conference call on Tuesday, May 4th. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Westlake Chemical (NYSE:WLK)

16 Wall Street analysts have issued ratings and price targets for Westlake Chemical in the last 12 months. Their average twelve-month price target is $82.53, predicting that the stock has a possible downside of 12.10%. The high price target for WLK is $124.00 and the low price target for WLK is $35.00. There are currently 3 sell ratings, 8 hold ratings and 5 buy ratings for the stock, resulting in a consensus rating of “Hold.”

Westlake Chemical has received a consensus rating of Hold. The company’s average rating score is 2.13, and is based on 5 buy ratings, 8 hold ratings, and 3 sell ratings. According to analysts’ consensus price target of $82.53, Westlake Chemical has a forecasted downside of 12.1% from its current price of $93.89. Westlake Chemical has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Westlake Chemical (NYSE:WLK)

Westlake Chemical has a dividend yield of 1.15%, which is in the bottom 25% of all stocks that pay dividends. Westlake Chemical has been increasing its dividend for 16 years. The dividend payout ratio of Westlake Chemical is 33.13%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Westlake Chemical will have a dividend payout ratio of 43.55% next year. This indicates that Westlake Chemical will be able to sustain or increase its dividend.

Insiders buying/selling: Westlake Chemical (NYSE:WLK)

In the past three months, Westlake Chemical insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $8,415,449.00 in company stock. 73.10% of the stock of Westlake Chemical is held by insiders. A high percentage of insider ownership can be a sign of company health. Only 28.19% of the stock of Westlake Chemical is held by institutions.

Earnings and Valuation of Westlake Chemical (NYSE:WLK

Earnings for Westlake Chemical are expected to grow by 42.53% in the coming year, from $1.74 to $2.48 per share. The P/E ratio of Westlake Chemical is 31.09, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 24.00. The P/E ratio of Westlake Chemical is 31.09, which means that it is trading at a more expensive P/E ratio than the Basic Materials sector average P/E ratio of about 25.97. Westlake Chemical has a PEG Ratio of 38.49. PEG Ratios above 1 indicate that a company could be overvalued. Westlake Chemical has a P/B Ratio of 1.88. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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