NYSE$WLK

Westlake Chemical Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Westlake's financial performance improved in Q1 2023, driven by higher demand and cost savings.

Westlake Corporation reported a net income of $394 million on net sales of $3,356 million for Q1 2023. This represents an increase in net income compared to Q4 2022, driven by higher operating rates and sales volume, lower feedstock, fuel, and power costs, and cost synergies from recent acquisitions.

  • Net income increased by 70% from Q4 2022.
  • EBITDA increased to $825 million, up from $619 million in the previous quarter.
  • PEM's EBITDA margin increased to 26% from 19% in Q4 2022.
  • HIP's EBITDA margin increased to 20% from 14% over the same period of time.

Headline financials

Total Revenue

$3.36B

Previous: $4.06B-17.3%
EPS (adj)

$3.05

Previous: $5.83-47.7%
Capital Expenditures

-$267M

Previous: -$263M-1.5%
Free Cash Flow

$127M

Previous: $493M-74.2%
Net Income

$394M

Previous: $756M-47.9%
Operating Income

$536M

Previous: $1.03B-48.1%
Gross Profit

$792M

Previous: $1.29B-38.4%
Cash & Equivalents

$2.41B

Previous: $1.06B+128.8%
Total Assets

$20.8B

Previous: $19.7B+5.4%
Stock-Based Comp

$9M

Previous: $8M+12.5%

Revenue & EPS history

Westlake · Revenue · Quarterly

$3.36B

Q1 2023-17.3%vs Q1 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

While the company is pleased with the start to the year, the macroeconomic backdrop remains uncertain. They are cautiously optimistic about the second quarter, which is typically the strongest of the year, while they continue to focus on areas within their control.

Tailwinds

  • Maintaining cost-focused culture
  • Attainment of cost synergies from recent acquisitions
  • Achieving ESG targets
  • Innovating to solve sustainability challenges
  • Redeploying capital in a shareholder-friendly manner

Headwinds

  • Impact of rising interest rates
  • Potential for tightening lending standards
  • Impact on demand for products
  • Uncertain macroeconomic backdrop
  • Difficult to predict the impact of these actions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.4%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.1%

Avg return

30 days after

51%

33 / 65 earnings

Positive

+12.1%

Q4 2025

Best reaction

-13.4%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.6%-6.9%-19.4%
Q4 2025+12.1%+13.3%+22.0%
Q3 2025-7.0%-9.1%-9.1%
Q1 2025-13.4%-15.5%-23.0%
Q4 2024-0.2%+2.4%-7.4%
Q3 2024+4.3%+0.5%-6.0%
Q2 2024+7.5%+9.4%+2.2%
Q1 2024+1.5%+4.0%+9.0%
Q4 2023-6.0%+2.8%+3.2%
Q3 2023+6.4%+3.6%+14.1%
Q2 2023-2.5%-1.3%-1.3%
Q1 2023+8.1%+5.3%+0.7%
Q4 2022-3.2%-0.9%-12.6%
Q3 2022+4.1%+5.5%+13.1%
Q2 2022-2.8%-2.9%-0.9%
Q1 2022+10.3%+8.0%+4.8%
Q4 2021-0.9%+2.4%+17.4%
Q3 2021+1.9%+0.9%-6.2%
Q2 2021-1.7%+0.3%+6.9%
Q1 2021+7.6%+9.3%+10.9%
Q4 2020+0.8%-2.1%+0.6%
Q3 2020-1.1%+1.3%+10.8%
Q2 2020+0.9%+7.4%+9.7%
Q1 2020+5.9%+7.8%+30.0%
Q4 2019-2.8%-4.1%-42.7%
Q3 2019+7.5%+9.3%-1.1%
Q2 2019+0.5%-0.6%-2.8%
Q1 2019-6.4%-10.6%-15.5%
Q4 2018-1.2%-6.6%-13.8%
Q3 2018+6.8%+1.9%-5.7%
Q2 2018-7.5%-6.7%-12.1%
Q1 2018-1.2%+0.5%+8.0%
Q4 2017+1.6%+4.1%+6.2%
Q3 2017+9.2%+8.1%+15.5%
Q2 2017-1.9%-2.5%+8.9%
Q1 2017+0.7%-0.1%+0.4%
Q4 2016+4.7%+3.2%+5.8%
Q3 2016+2.7%+2.5%+11.9%
Q2 2016-0.1%-4.0%+12.0%
Q1 2016-3.7%
Q4 2015-7.0%
Q3 2015+1.6%
Q2 2015+7.1%
Q1 2015-9.3%
Q4 2014+0.1%
Q3 2014-5.2%
Q2 2014-1.9%
Q1 2014+2.4%
Q4 2013+2.1%
Q3 2013+4.9%
Q2 2013+4.6%
Q1 2013+10.9%
Q4 2012-5.2%
Q3 2012-1.6%
Q2 2012+11.2%
Q1 2011-3.6%
Q1 2012+1.3%
Q1 2010-0.8%
Q4 2011-0.8%
Q4 2009-0.8%
Q3 2010+4.7%
Q3 2011+4.7%
Q4 2010-9.3%
Q2 2011-9.3%
Q2 2010-9.3%

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