While the top- and bottom-line numbers for LyondellBasell (LYB) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
The decline in LYB's Olefins performance is mainly due to reduced ethylene margins caused by higher energy costs and lower prices for co-products.
LyondellBasell (LYB) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $1.53 per share a year ago.
LyondellBasell's 9.3% dividend yield may seem appealing, but I don't believe that payout is all that sustainable. The chemical industry faces significant risks from tariffs, a potential recession, and falling crude oil prices, impacting LYB's financial stability. Analysts see vulnerability due to reduced polyethylene exports and increased competition from alternative suppliers.
LYB is expected to have benefited from demand improvements across most of its businesses amid headwinds from winter storm-related disruptions.
Get a deeper insight into the potential performance of LyondellBasell (LYB) for the quarter ended March 2025 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
LyondellBasell (LYB) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
LYB powers Dalian Site operations with 100% renewable electricity, a milestone that will help reduce carbon emissions.
Collect income from a source creating the basic blocks of our plastic-dependent society. Tariff confusion and shifting sentiment have created a high yield for a short time. The more others sell, the more I keep buying.
LyondellBasell provides a wide variety of compounds based on polyamides, polyesters and blends, among others.
LYB has faced a challenging year with a 22.6% stock decline, but its attractive valuations and high dividend yield make it a buy. Despite upbeat quarterly results, LYB's margins remain under pressure due to weak global demand, overcapacity, and high energy costs in Europe. Valuations are enticing, price-to-tangible book ratio at a 10-year low of 2.2x.
LyondellBasell Industries offers a compelling investment opportunity with a high 7.5% dividend yield and an undemanding valuation. LYB's cyclical business model is currently at a low point, but economic recovery and limited new production capacity should drive future profitability. The company's strong dividend growth track record and cost-saving initiatives indicate potential for higher average profits and long-term value.