WLKP Earnings Prediction
The chart below shows how WLKP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WLKP sees a -1.63% change in stock price 10 days leading up to the earnings, and a -0.89% change 10 days following the report. On the earnings day itself, the stock moves by +0.46%. This data can give you a slight idea of what to expect for the next quarter's release.
WLKP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
277.00M
-13.89%
-2.52%
Gross Margin
42.22%
46.04%
18.53%
Operating Margin
39.60%
47.71%
20.18%
Net Margin
37.58%
49.48%
21.30%
EPS
0.51
37.84%
24.39%
No Data Available
WLKP Earnings Analysis
WESTLAKE CHEMICAL PARTNERS LP Corporation (WLKP.N) Earnings Conference Call
Positive
Net Income Increase: 1. Increased Net Income: Westlake Partners reported a net income of $18 million or $0.51 per unit for Q3 2024, which is $5 million higher than the same quarter in 2023.
Increased Distributable Cash Flow: 2. Higher Distributable Cash Flow: The partnership achieved a distributable cash flow of $18 million for Q3 2024, an increase of $4 million compared to Q3 2023, driven by higher third-party sales volumes and prices.
Sales Performance Improvement: 3. Strong Sales Performance: Consolidated net sales reached $277 million in Q3 2024, reflecting improved production and sales volumes from OpCo.
Consistent Distribution Increase: 4. Consistent Distribution Growth: Since its IPO in 2014, Westlake Partners has increased its quarterly distribution by 71%, maintaining 41 consecutive distributions without deductions.
Strong Cash Reserves: 5. Robust Cash Position: At the end of Q3 2024, the partnership had a consolidated cash balance and cash investments totaling $170 million, with a strong leverage ratio below one times.
Negative
Ethylene Price Decline: 1. Declining Ethylene Sales Prices: Third-party ethylene sales prices and margins have decreased from the elevated levels in the third quarter, indicating a potential decline in revenue for the upcoming quarter.
Limited Q4 Sales Volume: 2. Limited Sales Volume for Q4: The company has very little third-party sales volume planned for the rest of 2024, which could negatively impact revenue generation in the fourth quarter.
Long-term Debt Risk: 3. High Long-term Debt: Long-term debt at the end of the quarter was $400 million, which poses a risk to financial stability given the current economic uncertainties.
Turnaround Deferment Risks: 4. Deferment of Turnaround: The decision to defer the planned turnaround at the Petro 1 ethylene unit until the first quarter of 2025 may lead to operational inefficiencies and potential production risks.
Macroeconomic Uncertainty Impact: 5. Unpredictable Macroeconomic Environment: The overall global macroeconomic environment remains unpredictable, which could adversely affect future performance and cash flow stability.
WLKP FAQs
How does WLKP typically perform around its earnings report dates?
Is Westlake Chemical Partners LP Common Units (WLKP) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
WLKP Earning Call Sentiment
Westlake Chemical Partners LP Common Units (WLKP) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WLKP.N
-0.51%Positive
Basic Financial Performance: 3 - Stable cash flows and increased net income, but declining margins.
Product Development and Business Update: 3 - Deferred turnaround may impact production.
Market Strategy: 3 - Strategic sales shift, but limited future volume.
Expenses and Financial Health: 3 - Stable leverage and cash balance, but high debt.
Shareholder Return Plan: 4 - Consistent distribution growth and stability.
Q&A Insights: Unclear management responses and declining margins suggest caution. Overall, stable financials and distribution growth are offset by competitive pressures and unclear future guidance.
