Olin Releases Q1 2026 Outlook Amid Lower Earnings Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: seekingalpha
- Earnings Report: Olin's Q4 GAAP EPS of -$0.75 missed expectations by $0.06, while revenue of $1.66 billion, down 0.6% year-over-year, exceeded forecasts by $120 million, indicating resilience in revenue generation.
- Future Outlook: The company anticipates that its Chemicals segment will report lower results in Q1 2026 compared to Q4 2025 due to planned maintenance turnaround costs and rising raw material expenses, particularly increased electrical power costs, which may impact profitability.
- Winchester Business: As commercial customer inventories normalize, Olin expects modest growth in its Winchester segment for Q1 2026 compared to Q4 2025, reflecting an improvement in market demand.
- Market Reaction: Following the earnings release, Olin's shares fell 2.55% in after-hours trading, reflecting investor concerns over future earnings expectations, despite revenue surpassing estimates, indicating potential impacts on market confidence.
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Analyst Views on OLN
Wall Street analysts forecast OLN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OLN is 24.00 USD with a low forecast of 20.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
3 Buy
7 Hold
1 Sell
Hold
Current: 22.740
Low
20.00
Averages
24.00
High
30.00
Current: 22.740
Low
20.00
Averages
24.00
High
30.00
About OLN
Olin Corporation is a vertically integrated global manufacturer and distributor of chemical products and a United States manufacturer of ammunition. It operates through three segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. The Epoxy segment produces and sells a full range of epoxy materials and precursors, including aromatics (acetone and phenol), allyl chloride, epichlorohydrin, liquid epoxy resins, solid epoxy resins and formulated solutions products such as converted epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, industrial cartridges and clay targets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Olin Scheduled to Announce Q4 Earnings on January 29
- Earnings Announcement Schedule: Olin is set to release its Q4 2023 earnings on January 29 after market close, with consensus EPS estimated at -$0.62 and revenue expected at $1.54 billion, reflecting a 7.8% year-over-year decline.
- Earnings Forecast Downgrades: Over the past three months, Olin's EPS estimates have seen no upward revisions and seven downward adjustments, indicating market concerns about the company's profitability, which could negatively impact investor confidence.
- Revenue Forecast Changes: Similarly, revenue estimates have not seen any upward revisions but have experienced 13 downward adjustments, highlighting a pessimistic outlook for Olin's future performance, potentially putting pressure on its stock price.
- Market Reaction: Despite Olin's stock sliding after a negative preannouncement, Trump's purchase of $51 million in bonds since November suggests a degree of confidence in Olin, which may influence market sentiment.
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Olin Releases Q1 2026 Outlook Amid Lower Earnings Expectations
- Earnings Report: Olin's Q4 GAAP EPS of -$0.75 missed expectations by $0.06, while revenue of $1.66 billion, down 0.6% year-over-year, exceeded forecasts by $120 million, indicating resilience in revenue generation.
- Future Outlook: The company anticipates that its Chemicals segment will report lower results in Q1 2026 compared to Q4 2025 due to planned maintenance turnaround costs and rising raw material expenses, particularly increased electrical power costs, which may impact profitability.
- Winchester Business: As commercial customer inventories normalize, Olin expects modest growth in its Winchester segment for Q1 2026 compared to Q4 2025, reflecting an improvement in market demand.
- Market Reaction: Following the earnings release, Olin's shares fell 2.55% in after-hours trading, reflecting investor concerns over future earnings expectations, despite revenue surpassing estimates, indicating potential impacts on market confidence.
Continue Reading