Huntsman Corporation
HUN
recently announced the completion of the India-based Do-It-Yourself consumer adhesives business to Pidilite Industries Ltd for pre-tax proceeds of around $257 million. Notably, this business is within the company’s Advanced Materials unit.
Per Huntsman, taxes applicable on the transaction are projected to be under 10%. Further, the company stated that it may receive up to nearly $28 million of additional cash within 18 months per the arrangement. This will be applicable if the business achieves top-line numbers that are in line with 2019 levels, for a total value of up to $285 million excluding working capital and other adjustments.
Huntsman’s shares are up 4.1% in the past year against the
industry
’s 1.7% decline.
Huntsman logged profits of $57 million or 22 cents per share in third-quarter 2020, up from a profit of $41 million or 13 cents in the year-ago quarter. Adjusted earnings per share were 32 cents in the quarter that beat the Zacks Consensus Estimate of 25 cents.
Revenues declined around 10% year over year to $1,510 million. Nevertheless, it surpassed the Zacks Consensus Estimate of $1,466.9 million.
Huntsman is witnessing positive momentum entering the fourth quarter. The company is on track to integrate two downstream acquisitions completed earlier this year and deliver more than $100 million of targeted annualized savings from its cost-optimization initiative by the end of 2021. It is also focused on growing its differentiated businesses and boosting shareholder’s value.
Zacks Rank & Other Key Picks
Huntsman currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are
Agnico Eagle Mines Limited
AEM
,
Northern Dynasty Minerals, Ltd.
NAK
and
B2Gold Corp
BTG
. While Agnico Eagle sports a Zacks Rank #1 (Strong Buy), Northern Dynasty Minerals and B2Gold carry a Zacks Rank #2. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Agnico Eagle has an expected earnings growth rate of 103.1% for 2020. Its shares have returned 45.5% in the past year.
Northern Dynasty Minerals has an expected earnings growth rate of 42.9% for 2020. The company’s shares have surged 33.9% in the past year.
B2Gold has an expected earnings growth rate of 257.1% for 2020. The company’s shares have skyrocketed 104.1% in the past year.
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