Huntsman Q3 Results Top Estimates; Street Says Buy

Chemical products manufacturer and marketer Huntsman Corporation (HUN) has reported stronger-than-expected results for the third quarter ended September 30, 2021, on the back of growth in revenue.

Following the earnings release, shares of the company rose 2.4% to close at $32.58 in Friday’s extended trading session.

Quarterly revenues rose 51.3% year-over-year to $2.29 billion, topping the consensus estimate of $2.02 billion. An increase in average selling price and volumes across all the key segments drove the growth in revenues of the company.

Quarterly earnings of $1.08 per share surpassed the consensus estimate of $0.92 per share. The company had posted earnings of $0.32 per share in the same quarter last year.

In other key operating metrics, the company generated net cash provided by operating activities from continuing operations of $186 million and free cash flow from continuing operations of $110 million in the third quarter.

Notably, HUN repurchased about 4 million shares for roughly $102 million in the third quarter.

The CEO of Huntsman, Peter R. Huntsman, said, “We are pleased with the strong earnings we delivered in the third quarter. Despite pockets of disruption in our supply chain and cost inflation, we see strong pent-up demand across most of our businesses with favorable pricing dynamics. In addition, we are benefiting from cost reduction programs and synergies from the acquisitions we completed over the past 18 months.” (See Huntsman stock chart on TipRanks)

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Recently, Alembic Global analyst Hassan Ahmed reiterated a Buy rating on the stock with a price target of $32, which implies downside potential of 1.8% from current levels.

Consensus among analysts is a Strong Buy based on 8 unanimous Buys. The average Huntsman price target of $36.13 implies upside potential of 10.9% from current levels.

Huntsman scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 30.2% over the past year.

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