BAK Earnings Prediction
The chart below shows how BAK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BAK sees a +3.70% change in stock price 10 days leading up to the earnings, and a +1.59% change 10 days following the report. On the earnings day itself, the stock moves by +0.01%. This data can give you a slight idea of what to expect for the next quarter's release.
BAK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.83B
12.26%
4.82%
Gross Margin
10.58%
210.26%
45.13%
Operating Margin
7.13%
331.49%
457.03%
Net Margin
-4.09%
-73.34%
-80.03%
EPS
-0.13
-79.03%
-85.56%
No Data Available
BAK Earnings Analysis
Braskem S.A. American Depositary Shares (Each representing Two Class A Preferred Shares) Corporation (BAK.N) Earnings Conference Call
Positive
EBITDA Surge: 1. Significant EBITDA Growth: Braskem's recurring EBITDA reached $432 million in Q3 2024, marking a 35% increase from Q2 and a remarkable 130% increase year-over-year.
Robust Cash Reserves: 2. Strong Cash Position: The company reported a cash position of $2.4 billion at the end of the quarter, sufficient to cover debt maturities for the next 52 months without considering the available $1 billion international revolving credit line.
Utilization Rate Increase: 3. Improved Utilization Rates: The utilization rate of Brazilian petrochemical plants increased by 2 percentage points compared to the previous quarter, contributing to a 6% increase in sales volume in the Brazilian market.
Cetrel Sale Impact: 4. Successful Sale of Cetrel: Braskem concluded the sale of control of Cetrel for approximately R$293 million, with R$208 million received in the quarter, positively impacting cash flow.
Cost Management Impact: 5. Cost Management Initiatives: The company implemented initiatives that positively impacted EBITDA by about $212 million and cash generation by approximately $279 million, enhancing financial resilience during a low cycle.
Negative
Cash Consumption Increase: 1. Increased Cash Consumption: Recurring cash generation resulted in a consumption of approximately R$1.1 billion due to higher interest payments and increased inventory of feedstock, leading to a significant cash outflow.
Sales Decline in Mexico: 2. Declining Sales Volume in Mexico: Sales in Mexico decreased by 11% compared to the last quarter, attributed to inventory management and expectations of lower polyethylene prices in the international market.
Utilization Rate Decline: 3. Lower Utilization Rates: The utilization rate in Mexico was 74%, 4 percentage points lower than the previous quarter, impacted by shutdowns and reduced ethane supply from international suppliers.
Alagoas Financial Strain: 4. High Provisioning for Alagoas: Total provisions for the Alagoas event reached approximately R$16.3 billion, with R$4.8 billion remaining to be disbursed, indicating ongoing financial strain from this issue.
Negative Working Capital Impact: 5. Negative Working Capital Variation: The negative variation in working capital was primarily due to higher inventory levels and reduced accounts payable, which is expected to continue affecting cash flow negatively.
BAK FAQs
How does BAK typically perform around its earnings report dates?
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BAK Earning Call Sentiment
Braskem S.A. (BAK) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
BAK.N
-6.37%Positive
The earnings call showed strong financial performance with a significant increase in EBITDA and cash position, but lacked clarity on future guidance, especially in the Q&A section. The absence of a share buyback or dividend program and the substantial provisions for the Alagoas event are concerns. The market cap suggests moderate reaction, leading to a neutral prediction for the stock price movement.
