June 27, 2017

Huntsman Merger to Create World's Largest Specialty Chemical Company

This global manufacturer of differentiated chemicals was already impressing the market with its enviable record for beating quarterly earnings estimates, but it’s in the process of taking a big step to becoming a player in one of the best-ranked industries in the market. Late last month, HUN and Clariant announced a merger of equals that would create a leading global specialty chemical company with an enterprise value of about $20 billion with sales of approximately $13.2 billion and an adjusted EBITDA of $2.3 billion. Huntsman shareholders will receive 1.2196 shares in the combined company (known as HuntsmanClariant) for each Huntsman share. It is expected to close by the end of the year.

One look at Huntsman’s history, you can tell that Clariant is pretty good at picking partners. HUN has beaten the Zacks Consensus Estimate for nine straight quarters now, and in 14 out of the last 15 quarters. Most recently, it reported 57 cents per share in its first quarter, which was 50% better than the 38-cent estimate. The company has amassed an average surprise of more than 20.1% over the past four quarters. Revenues improved by nearly 5% from last year to $2.47 billion, which was also ahead of our expectations at $2.45 billion as nearly all business segments outperformed. HUN is still planning to IPO its Pigments and Additives business (known as Venator) this summer.

The past two months have seen four of the five covering analysts raise their expectations on HUN. The Zacks Consensus Estimate for this year has climbed 17.2% in that time to $2.18 per share. Before the merger was announced, earnings estimates for 2018 had jumped nearly 16% to $2.47, which also suggested growth of more than 13% over 2017.
This global manufacturer of differentiated chemicals was already impressing the market with its enviable record for beating quarterly earnings estimates, but it’s in the process of taking a big step to becoming a player in one of the best-ranked industries in the market. Late last month, HUN and Clariant announced a merger of equals that would create a leading global specialty chemical company with an enterprise value of about $20 billion with sales of approximately $13.2 billion and an adjusted EBITDA of $2.3 billion. Huntsman shareholders will receive 1.2196 shares in the combined company (known as HuntsmanClariant) for each Huntsman share. It is expected to close by the end of the year.
One look at Huntsman’s history, you can tell that Clariant is pretty good at picking partners. HUN has beaten the Zacks Consensus Estimate for nine straight quarters now, and in 14 out of the last 15 quarters. Most recently, it reported 57 cents per share in its first quarter, which was 50% better than the 38-cent estimate. The company has amassed an average surprise of more than 20.1% over the past four quarters. Revenues improved by nearly 5% from last year to $2.47 billion, which was also ahead of our expectations at $2.45 billion as nearly all business segments outperformed. HUN is still planning to IPO its Pigments and Additives business (known as Venator) this summer.
The past two months have seen four of the five covering analysts raise their expectations on HUN. The Zacks Consensus Estimate for this year has climbed 17.2% in that time to $2.18 per share. Before the merger was announced, earnings estimates for 2018 had jumped nearly 16% to $2.47, which also suggested growth of more than 13% over 2017
This global manufacturer of differentiated chemicals was already impressing the market with its enviable record for beating quarterly earnings estimates, but it’s in the process of taking a big step to becoming a player in one of the best-ranked industries in the market. Late last month, HUN and Clariant announced a merger of equals that would create a leading global specialty chemical company with an enterprise value of about $20 billion with sales of approximately $13.2 billion and an adjusted EBITDA of $2.3 billion. Huntsman shareholders will receive 1.2196 shares in the combined company (known as HuntsmanClariant) for each Huntsman share. It is expected to close by the end of the year.
One look at Huntsman’s history, you can tell that Clariant is pretty good at picking partners. HUN has beaten the Zacks Consensus Estimate for nine straight quarters now, and in 14 out of the last 15 quarters. Most recently, it reported 57 cents per share in its first quarter, which was 50% better than the 38-cent estimate. The company has amassed an average surprise of more than 20.1% over the past four quarters. Revenues improved by nearly 5% from last year to $2.47 billion, which was also ahead of our expectations at $2.45 billion as nearly all business segments outperformed. HUN is still planning to IPO its Pigments and Additives business (known as Venator) this summer.
The past two months have seen four of the five covering analysts raise their expectations on HUN. The Zacks Consensus Estimate for this year has climbed 17.2% in that time to $2.18 per share. Before the merger was announced, earnings estimates for 2018 had jumped nearly 16% to $2.47, which also suggested growth of more than 13% over 2017
This global manufacturer of differentiated chemicals was already impressing the market with its enviable record for beating quarterly earnings estimates, but it’s in the process of taking a big step to becoming a player in one of the best-ranked industries in the market. Late last month, HUN and Clariant announced a merger of equals that would create a leading global specialty chemical company with an enterprise value of about $20 billion with sales of approximately $13.2 billion and an adjusted EBITDA of $2.3 billion. Huntsman shareholders will receive 1.2196 shares in the combined company (known as HuntsmanClariant) for each Huntsman share. It is expected to close by the end of the year.
One look at Huntsman’s history, you can tell that Clariant is pretty good at picking partners. HUN has beaten the Zacks Consensus Estimate for nine straight quarters now, and in 14 out of the last 15 quarters. Most recently, it reported 57 cents per share in its first quarter, which was 50% better than the 38-cent estimate. The company has amassed an average surprise of more than 20.1% over the past four quarters. Revenues improved by nearly 5% from last year to $2.47 billion, which was also ahead of our expectations at $2.45 billion as nearly all business segments outperformed. HUN is still planning to IPO its Pigments and Additives business (known as Venator) this summer.
The past two months have seen four of the five covering analysts raise their expectations on HUN. The Zacks Consensus Estimate for this year has climbed 17.2% in that time to $2.18 per share. Before the merger was announced, earnings estimates for 2018 had jumped nearly 16% to $2.47, which also suggested growth of more than 13% over 2017

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