Analysts project a quarterly loss of $0.12 per share, a significant revision from earlier estimates, indicating potential challenges for Huntsman Corporation (NYSE:HUN).
Despite the anticipated loss, revenue is expected to see a 4.2% increase year-over-year to approximately $1.45 billion.
The company’s financial metrics, including a negative P/E ratio and a moderate debt-to-equity ratio, present a mixed picture of its current financial health.
Huntsman Corporation, listed on the NYSE under the symbol HUN, is a global manufacturer and marketer of differentiated and specialty chemicals. The company operates in various segments, including polyurethanes, performance products, and advanced materials. As Huntsman prepares to release its quarterly earnings on February 17, 2025, analysts are closely watching the company’s financial performance.
Wall Street analysts estimate that Huntsman will report a quarterly loss of $0.07 per share. However, recent projections suggest a larger loss of $0.12 per share for the quarter ending December 2024. This represents a 42.9% increase in losses compared to the same period last year. Such a significant revision in earnings estimates, down by 95.1% over the past 30 days, indicates a reevaluation by analysts, which can impact investor sentiment and stock price movements.
Despite the anticipated loss, Huntsman’s revenue is projected to be approximately $1.45 billion. This aligns closely with the expected $1.46 billion, marking a 4.2% increase year-over-year. The company’s price-to-sales ratio of about 0.49 suggests that the stock is valued at less than half of its sales per share, which may attract investors looking for undervalued opportunities.
Huntsman’s financial metrics reveal a complex picture. The negative price-to-earnings (P/E) ratio of -24.56 and an earnings yield of approximately -4.07% highlight the company’s current challenges with negative earnings. However, the debt-to-equity ratio of about 0.73 indicates a moderate level of debt, while a current ratio of approximately 1.47 suggests good liquidity to cover short-term liabilities.
The upcoming earnings report will be crucial for Huntsman. If the company surpasses earnings estimates, it could lead to a positive stock price movement. Conversely, falling short may result in a decline. The sustainability of any immediate price changes will depend on management’s discussion of business conditions during the earnings call.
