NYSE$WLK

Westlake Chemical Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Westlake reported a decrease in net income and sales due to lower sales prices and volumes in most product categories, but noted that caustic soda prices remained high.

Westlake Corporation reported Q4 2022 results with net sales of $3.3 billion and net income of $232 million. The results were impacted by weaker demand and lower sales prices in Performance Materials, as well as lower volumes in Housing and Infrastructure Products. However, caustic soda prices remained high, supporting earnings.

  • Q4 net sales were $3.3 billion, with net income at $232 million.
  • Performance and Essential Materials segment was supported by continued supply-demand tightening for caustic soda, which led to higher global sales prices.
  • Housing and Infrastructure Products segment experienced volume declines due to seasonality, customer destocking, and the impact of rising mortgage rates.
  • The company expects Performance and Essential Materials to run profitably at higher operating rates, supported by its North American footprint.

Headline financials

Total Revenue

$3.3B

Previous: $3.51B-5.9%
EPS (adj)

$1.79

Previous: $4.98-64.1%
Capital Expenditures

$297M

Previous: $244M+21.7%
Free Cash Flow

$538M

Previous: $513M+4.9%
Net Income

$232M

Previous: $644M-64.0%
Operating Income

$327M

Previous: $873M-62.5%
Gross Profit

$567M

Previous: $1.1B-48.3%
Cash & Equivalents

$2.23B

Previous: $1.91B+16.8%
Total Assets

$20.6B

Previous: $18.5B+11.3%
Stock-Based Comp

$10M

Previous: $8M+25.0%

Revenue & EPS history

Westlake · Revenue · Quarterly

$3.3B

Q4 2022-5.9%vs Q4 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

Westlake anticipates continued challenges due to macroeconomic uncertainty and slowing residential construction, but expects growth in repair and remodeling activity and remains confident in the fundamentals of its business, expecting Performance and Essential Materials to run profitably and benefit from structural cost advantages. Stabilizing power and fuel costs in Europe and potential economic growth in China may further benefit Performance and Essential Materials.

Tailwinds

  • Performance and Essential Materials to run profitably at higher operating rates.
  • North American footprint benefits from a structural global cost advantage in feedstocks, fuel and power.
  • Potential for improving economic growth in China may further benefit Performance and Essential Materials.
  • Modest growth expected in repair and remodeling activity.
  • Well-positioned across product portfolio to benefit from structural trends in markets.

Headwinds

  • Global macroeconomic uncertainty remains high.
  • Slowing of residential construction is expected to continue.
  • Challenging environment may continue in the near-term.
  • Weaker demand in most geographies and product categories.
  • Customer destocking and the continuing impact on housing affordability from the recent run up of mortgage rates in the United States

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 Q4 2022

Historical avgQ4 2022

+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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