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BASF (BASFY) to Report Q4 Earnings: What's in the Offing?

BASF SE BASFY is slated to release fourth-quarter 2022 results on Feb 24.

The company’s fourth-quarter results are likely to reflect the benefits of higher prices and favorable currency swings. However, weaker demand, especially in Europe, and higher raw material and energy costs are likely to have affected its performance.
 
Shares of BASF are down 20.3% in the past year compared with a 9.1% rise of the industry.

 

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Zacks Investment Research


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Let’s see how things are shaping up for this announcement.

Factors at Play

BASF is expected to have benefited, in the fourth quarter, from higher prices in most of its segments. The company has been implementing price increases in the wake of the cost inflation. Higher prices are likely to have supported its top line in the quarter. Currency is also likely to have favorably impacted its fourth-quarter sales.

However, sluggish customer demand, particularly in Europe, is expected to have impacted the company’s performance in the quarter to be reported. Weaker demand is likely to have weighed on its sales volumes in the quarter. Demand across electronics and construction end markets are expected to have remained weak in the fourth quarter. Rising interest rates are impacting the construction market in North America and Europe.  

The company is also likely to have faced headwinds from persistently high raw materials and energy prices in the fourth quarter. Higher natural gas costs in Europe are likely to have impacted its margins.

 

BASF SE Price and EPS Surprise

 

BASF SE Price and EPS Surprise
BASF SE Price and EPS Surprise

BASF SE price-eps-surprise | BASF SE Quote

Zacks Model

Our proven model does not conclusively predict an earnings beat for BASF this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for BASF is 0.00%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 5 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: BASF currently carries a Zacks Rank #3.

Stocks That Warrant a Look

Here are some companies you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:

Lithium Americas Corp. LAC, which is expected to release earnings on Mar 15, has an Earnings ESP of +48.68% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for LAC’s earnings for fourth quarter is currently pegged at a loss of 25 cents.

Eos Energy Enterprises, Inc. EOSE, slated to release earnings on Feb 28, has an Earnings ESP of +14.53%.

The Zacks Consensus Estimate for Eos Energy Enterprises’ fourth-quarter earnings is currently pegged at a loss of 60 cents. EOSE currently carries a Zacks Rank #3.

Americas Gold and Silver Corporation USAS, expected to release earnings on Mar 16, has an Earnings ESP of +66.7%.

The Zacks Consensus Estimate for Americas Gold and Silver’s fourth-quarter earnings is currently pegged at a loss of 2 cents. USAS currently carries a Zacks Rank #3.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BASF SE (BASFY) : Free Stock Analysis Report

Americas Gold and Silver Corporation (USAS) : Free Stock Analysis Report

Lithium Americas Corp. (LAC) : Free Stock Analysis Report

Eos Energy Enterprises, Inc. (EOSE) : Free Stock Analysis Report

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