Westlake (NYSE:WLK) Shares Gap Down on Disappointing Earnings

Westlake Co. (NYSE:WLK - Get Free Report)'s share price gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $92.27, but opened at $79.48. Westlake shares last traded at $83.15, with a volume of 440,268 shares traded.

The specialty chemicals company reported ($0.31) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.70 by ($1.01). Westlake had a return on equity of 6.93% and a net margin of 0.81%. The company had revenue of $2.85 billion for the quarter, compared to the consensus estimate of $2.97 billion. During the same period in the previous year, the company earned $1.34 EPS. The firm's revenue for the quarter was down 4.3% compared to the same quarter last year.

Westlake Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, March 19th. Shareholders of record on Tuesday, March 4th were given a dividend of $0.525 per share. This represents a $2.10 dividend on an annualized basis and a yield of 2.54%. The ex-dividend date was Tuesday, March 4th. Westlake's dividend payout ratio is 45.36%.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on WLK shares. StockNews.com raised Westlake from a "sell" rating to a "hold" rating in a research report on Thursday. UBS Group cut their price target on Westlake from $144.00 to $127.00 and set a "buy" rating for the company in a report on Monday, April 7th. Truist Financial lowered their price objective on shares of Westlake from $155.00 to $132.00 and set a "buy" rating on the stock in a research note on Monday, April 14th. BMO Capital Markets cut their target price on shares of Westlake from $157.00 to $132.00 and set a "market perform" rating for the company in a research note on Wednesday, February 26th. Finally, Royal Bank of Canada decreased their price target on shares of Westlake from $147.00 to $133.00 and set an "outperform" rating on the stock in a research report on Wednesday, February 26th. Five research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat.com, Westlake presently has an average rating of "Moderate Buy" and a consensus price target of $122.25.

Institutional Investors Weigh In On Westlake

A number of institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in shares of Westlake by 0.6% during the 4th quarter. Vanguard Group Inc. now owns 3,877,973 shares of the specialty chemicals company's stock worth $444,610,000 after buying an additional 21,293 shares during the period. Victory Capital Management Inc. boosted its stake in shares of Westlake by 21.0% in the 4th quarter. Victory Capital Management Inc. now owns 3,313,847 shares of the specialty chemicals company's stock valued at $379,933,000 after purchasing an additional 574,068 shares in the last quarter. Balyasny Asset Management L.P. grew its holdings in shares of Westlake by 732.7% in the 4th quarter. Balyasny Asset Management L.P. now owns 993,150 shares of the specialty chemicals company's stock worth $113,865,000 after purchasing an additional 873,888 shares during the last quarter. Nuveen Asset Management LLC increased its position in shares of Westlake by 6.3% during the 4th quarter. Nuveen Asset Management LLC now owns 983,090 shares of the specialty chemicals company's stock worth $112,711,000 after purchasing an additional 58,093 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in Westlake by 4.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 934,122 shares of the specialty chemicals company's stock valued at $107,092,000 after purchasing an additional 43,544 shares during the last quarter. 28.40% of the stock is owned by institutional investors and hedge funds.

Westlake Stock Performance

The company has a quick ratio of 2.04, a current ratio of 2.79 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $10.60 billion, a price-to-earnings ratio of 116.23, a price-to-earnings-growth ratio of 2.36 and a beta of 1.02. The stock's 50-day simple moving average is $99.05 and its 200 day simple moving average is $113.88.

Westlake Company Profile

Westlake Corporation engages in the manufacture and marketing of performance and essential materials, and housing and infrastructure products in the United States, Canada, Germany, China, Mexico, Brazil, France, Italy, Taiwan, and internationally. The company operates through two segments: Performance and Essential Materials and Housing and Infrastructure Products.

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