Zacks Research Issues Negative Outlook for Westlake Earnings

Key Points

• Zacks Research has downgraded its Q3 2026 EPS estimate for Westlake from $1.57 to $1.37, also projecting $0.88 for Q1 2027 and $1.60 for Q2 2027.
• Analysts from various financial institutions have lowered their price targets for Westlake, with Truist Financial setting a new target of $92.00, down from $117.00.
• Westlake recently announced an increase in its quarterly dividend to $0.53 per share, reflecting a 2.5% dividend yield, up from the previous $0.47.

Westlake Corp. (NYSE:WLK - Free Report) - Analysts at Zacks Research decreased their Q3 2026 earnings per share (EPS) estimates for shares of Westlake in a research report issued on Monday, August 25th. Zacks Research analyst Team now forecasts that the specialty chemicals company will earn $1.37 per share for the quarter, down from their prior estimate of $1.57. The consensus estimate for Westlake's current full-year earnings is $6.48 per share. Zacks Research also issued estimates for Westlake's Q1 2027 earnings at $0.88 EPS and Q2 2027 earnings at $1.60 EPS.

Other analysts have also recently issued research reports about the company. Truist Financial lowered their price target on Westlake from $117.00 to $92.00 and set a "buy" rating for the company in a report on Friday, May 30th. The Goldman Sachs Group decreased their target price on shares of Westlake from $130.00 to $95.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 6th. Bank of America dropped their price target on shares of Westlake from $90.00 to $84.00 and set a "buy" rating for the company in a research report on Wednesday, June 18th. Morgan Stanley decreased their price target on shares of Westlake from $98.00 to $90.00 and set an "equal weight" rating on the stock in a report on Wednesday, August 6th. Finally, Tudor Pickering upgraded Westlake from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $92.29.

Westlake Trading Down 0.0%

Shares of Westlake stock opened at $86.16 on Thursday. Westlake has a fifty-two week low of $68.55 and a fifty-two week high of $151.56. The business's fifty day moving average is $81.51 and its two-hundred day moving average is $88.72. The company has a quick ratio of 1.75, a current ratio of 2.47 and a debt-to-equity ratio of 0.43. The firm has a market cap of $11.05 billion, a PE ratio of -162.56, a P/E/G ratio of 378.89 and a beta of 0.92.

Westlake (NYSE:WLK - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The specialty chemicals company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.15). The company had revenue of $2.95 billion during the quarter, compared to analysts' expectations of $3 billion. Westlake had a negative net margin of 0.57% and a positive return on equity of 1.26%. The firm's revenue was down 7.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.40 earnings per share.

Institutional Trading of Westlake

Hedge funds and other institutional investors have recently modified their holdings of the business. Norges Bank purchased a new position in Westlake in the second quarter valued at about $104,314,000. Brandes Investment Partners LP increased its holdings in Westlake by 246.0% during the 2nd quarter. Brandes Investment Partners LP now owns 1,456,871 shares of the specialty chemicals company's stock worth $110,621,000 after purchasing an additional 1,035,851 shares during the last quarter. Balyasny Asset Management L.P. raised its position 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 valued at $113,865,000 after purchasing an additional 873,888 shares in the last quarter. ANTIPODES PARTNERS Ltd purchased a new position in shares of Westlake during the 2nd quarter valued at approximately $62,508,000. Finally, Nuveen LLC acquired a new stake in shares of Westlake during the first quarter worth approximately $72,974,000. 28.40% of the stock is owned by hedge funds and other institutional investors.

Westlake Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Tuesday, August 19th will be paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 2.5%. This is a boost from Westlake's previous quarterly dividend of $0.47. The ex-dividend date is Tuesday, August 19th. Westlake's payout ratio is currently -400.00%.

About Westlake

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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