Zacks Research Has Pessimistic View of Westlake Q1 Earnings

Westlake Co. (NYSE:WLK) – Equities research analysts at Zacks Research lowered their Q1 2025 earnings per share (EPS) estimates for shares of Westlake in a research note issued to investors on Monday, November 25th. Zacks Research analyst R. Department now anticipates that the specialty chemicals company will post earnings per share of $1.56 for the quarter, down from their prior forecast of $1.76. The consensus estimate for Westlake’s current full-year earnings is $6.47 per share. Zacks Research also issued estimates for Westlake’s Q2 2025 earnings at $2.13 EPS, Q3 2025 earnings at $2.05 EPS, Q4 2025 earnings at $1.08 EPS, Q1 2026 earnings at $2.20 EPS and Q3 2026 earnings at $2.32 EPS.

Westlake (NYSE:WLK) last posted its quarterly earnings results on Tuesday, November 5th. The specialty chemicals company reported $1.41 earnings per share for the quarter, missing analysts’ consensus estimates of $2.21 by ($0.80). The business had revenue of $3.12 billion during the quarter, compared to analyst estimates of $3.31 billion. Westlake had a net margin of 0.81% and a return on equity of 6.93%. The firm’s quarterly revenue was up .1% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.20 earnings per share.

A number of other equities research analysts have also recently weighed in on the stock. BMO Capital Markets reduced their price target on shares of Westlake from $171.00 to $165.00 and set a “market perform” rating for the company in a research report on Wednesday, November 13th. Bank of America raised Westlake from an “underperform” rating to a “neutral” rating and boosted their target price for the company from $151.00 to $159.00 in a report on Wednesday, October 16th. Royal Bank of Canada dropped their price target on Westlake from $170.00 to $167.00 and set an “outperform” rating on the stock in a research note on Monday, November 11th. UBS Group dropped their price objective on shares of Westlake from $160.00 to $144.00 and set a “neutral” rating on the stock in a research note on Wednesday, November 6th. Finally, Barclays raised Westlake from an “equal weight” rating to an “overweight” rating and increased their price objective for the stock from $162.00 to $180.00 in a research report on Monday, September 30th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $162.17.

Westlake Price Performance

Shares of NYSE WLK opened at $128.55 on Thursday. The stock’s 50-day simple moving average is $137.53 and its 200-day simple moving average is $143.94. The company has a debt-to-equity ratio of 0.41, a quick ratio of 2.04 and a current ratio of 2.79. The firm has a market capitalization of $16.55 billion, a PE ratio of 181.06, a price-to-earnings-growth ratio of 2.48 and a beta of 1.19. Westlake has a fifty-two week low of $118.64 and a fifty-two week high of $162.64.

Westlake Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 12th. Stockholders of record on Tuesday, November 26th will be given a dividend of $0.525 per share. The ex-dividend date is Tuesday, November 26th. This represents a $2.10 dividend on an annualized basis and a dividend yield of 1.63%. Westlake’s payout ratio is 295.77%.

Insider Transactions at Westlake

In related news, Director David Tsung-Hung Chao sold 1,750 shares of the business’s stock in a transaction dated Friday, November 22nd. The shares were sold at an average price of $130.00, for a total value of $227,500.00. Following the sale, the director now directly owns 9,534 shares in the company, valued at $1,239,420. The trade was a 15.51 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 74.10% of the company’s stock.

Hedge Funds Weigh In On Westlake

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Jacobs Levy Equity Management Inc. lifted its position in shares of Westlake by 699.1% in the third quarter. Jacobs Levy Equity Management Inc. now owns 595,149 shares of the specialty chemicals company’s stock valued at $89,445,000 after acquiring an additional 520,669 shares in the last quarter. Ilex Capital Partners UK LLP purchased a new position in Westlake in the 3rd quarter valued at about $55,542,000. 1832 Asset Management L.P. acquired a new stake in shares of Westlake during the 2nd quarter worth about $27,179,000. Allspring Global Investments Holdings LLC grew its holdings in shares of Westlake by 90.6% during the third quarter. Allspring Global Investments Holdings LLC now owns 386,480 shares of the specialty chemicals company’s stock worth $58,084,000 after buying an additional 183,666 shares in the last quarter. Finally, Bank of Montreal Can raised its position in shares of Westlake by 3,330.4% in the second quarter. Bank of Montreal Can now owns 150,047 shares of the specialty chemicals company’s stock valued at $23,802,000 after buying an additional 145,673 shares during the last quarter. Institutional investors and hedge funds own 28.40% of the company’s stock.

Westlake Company Profile

Westlake Corporation engages in the manufacture and marketing of performance and essential materials, and housing and infrastructure products in the United States, Canada, Germany, China, Mexico, Brazil, France, Italy, Taiwan, and internationally. The company operates through two segments: Performance and Essential Materials and Housing and Infrastructure Products.