NYSE$WLK

Westlake Chemical Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Westlake reported a net loss impacted by non-cash impairment charges and liability claims, while HIP segment showed growth in income from operations.

Westlake Corporation reported a challenging fourth quarter with a net loss of $497 million, impacted by significant Identified Items. Excluding these items, the company's net income was $93 million. The Housing and Infrastructure Products segment demonstrated resilience, while the Performance and Essential Materials segment was affected by lower sales prices.

  • Westlake reported net sales of $2.8 billion and a net loss of $497 million, or $3.86 per share.
  • Q4 earnings were impacted by a $475 million non-cash impairment charge and a $150 million charge to resolve certain liability claims.
  • Excluding Identified Items, Q4 net income was $93 million, or $0.72 per share, and EBITDA was $390 million.
  • Housing and Infrastructure Products segment's income from operations increased year-over-year due to higher sales volume and lower material costs.

Headline financials

Total Revenue

$2.83B

Previous: $3.3B-14.3%
EPS (adj)

$0.72

Previous: $1.79-59.8%
Capital Expenditures

-$282M

Previous: $297M-194.9%
Net Income

-$497M

Previous: $232M-314.2%
Operating Income

-$552M

Previous: $327M-268.8%
Gross Profit

$169M

Previous: $567M-70.2%
Stock-Based Comp

$12M

Previous: $10M+20.0%

Revenue & EPS history

Westlake · Revenue · Quarterly

$2.83B

Q4 2023-14.3%vs Q4 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

Westlake anticipates relatively healthy consumer spending in the U.S. to drive modest growth in HIP segment sales volume and expects no further deterioration in the PEM segment with signs of stabilization in sales prices and volumes.

Tailwinds

  • Relatively healthy consumer spending in the U.S.
  • Strong labor market supporting consumer spending.
  • Moderating interest rates.
  • Signs of stabilization in sales prices and volumes in PEM segment.
  • Focus on structural cost improvement in Europe for PEM.

Headwinds

  • Global macroeconomic conditions largely unchanged from Q4 2023.
  • Continuing weak global industrial and manufacturing activity.
  • Sustained high operating costs in Europe.
  • Significant imports of material from Asia.
  • Potential impact on demand due to recycling initiatives and customers seeking alternatives to polymers.

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 2023

Historical avgQ4 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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