Westlake (NYSE:WLK) Issues Quarterly Earnings Results

Key Points

• Westlake beat quarterly expectations: The specialty chemicals company reported earnings of $2.01 per share, $0.18 above consensus, while revenue of $3.27 billion modestly exceeded estimates.
• Shares remain under pressure: WLK opened at $69.85, well below its 50-day and 200-day moving averages, and has traded between $56.33 and $124.23 over the past year.
• Dividend maintained amid mixed analyst sentiment: Westlake pays a quarterly dividend of $0.53 per share, yielding about 3.0%, while analysts collectively rate the stock “Hold” with a consensus price target of $97.64.

Westlake (NYSE:WLK - Get Free Report) posted its quarterly earnings results on Tuesday. The specialty chemicals company reported $2.01 earnings per share for the quarter, beating the consensus estimate of $1.83 by $0.18, FiscalAI reports. The business had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.24 billion. Westlake had a negative return on equity of 1.89% and a negative net margin of 14.91%.During the same quarter in the previous year, the business earned ($1.11) EPS.

Westlake Price Performance

Shares of NYSE WLK opened at $69.85 on Tuesday. The firm has a 50-day simple moving average of $79.08 and a 200-day simple moving average of $94.18. The company has a quick ratio of 1.56, a current ratio of 2.17 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $8.95 billion, a price-to-earnings ratio of -5.50 and a beta of 0.63. Westlake has a 52 week low of $56.33 and a 52 week high of $124.23.

Westlake Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 11th. Stockholders of record on Wednesday, May 27th were issued a dividend of $0.53 per share. The ex-dividend date of this dividend was Wednesday, May 27th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 3.0%. Westlake's dividend payout ratio is presently -16.69%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on WLK shares. Zacks Research cut shares of Westlake from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 21st. JPMorgan Chase & Co. raised shares of Westlake from an "underweight" rating to a "neutral" rating and set a $90.00 price target on the stock in a report on Monday, May 18th. UBS Group reaffirmed a "buy" rating and issued a $117.00 price objective (down from $130.00) on shares of Westlake in a report on Friday, June 5th. BMO Capital Markets reiterated a "market perform" rating and issued a $96.00 price objective on shares of Westlake in a research report on Monday, July 6th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Westlake in a research note on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $97.64.

Institutional Trading of Westlake

A number of hedge funds have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Westlake in the third quarter valued at approximately $28,000. Quarry LP purchased a new position in Westlake during the fourth quarter worth approximately $31,000. CIBC Private Wealth Group LLC acquired a new position in Westlake during the third quarter worth $53,000. NewEdge Advisors LLC grew its holdings in Westlake by 49.6% in the 2nd quarter. NewEdge Advisors LLC now owns 745 shares of the specialty chemicals company's stock valued at $57,000 after buying an additional 247 shares in the last quarter. Finally, Transamerica Financial Advisors LLC grew its holdings in Westlake by 37.4% in the 4th quarter. Transamerica Financial Advisors LLC now owns 805 shares of the specialty chemicals company's stock valued at $59,000 after buying an additional 219 shares in the last quarter. Institutional investors and hedge funds own 28.40% of the company's stock.

Westlake Company Profile

Westlake Corp. is a global manufacturer of petrochemicals, polymers and building products, serving customers across industrial and residential markets. The company's core operations encompass the production of vinyls—primarily polyvinyl chloride (PVC) and its key feedstock vinyl chloride monomer (VCM)—as well as chlor-alkali products including caustic soda and chlorine. In addition, Westlake produces ethylene, propylene and specialty elastomers, along with construction-related materials such as vinyl siding, trim, windows and roofing systems.

Operating a network of vertically integrated plants and distribution centers, Westlake serves markets in North America, Europe and Asia.

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