Earnings Alerts

BASF (BAS) Earnings: 2Q Adjusted EBIT Misses Estimates Amid Variable Segment Performance

  • Adjusted EBIT: €969 million, below the estimate of €1.03 billion
  • Adjusted EBITDA: €1.96 billion, below the estimate of €2.01 billion
  • Chemicals Adjusted EBITDA:
    • €444 million (+13% year-over-year), top estimate of €413.2 million
  • Nutrition and Care Adjusted EBITDA:
    • €183 million (+31% y/y), below estimate of €238.3 million
  • Materials Adjusted EBITDA:
    • €448 million (-3% y/y), below estimate of €477.9 million
  • Industrial Solutions Adjusted EBITDA:
    • €320 million (+55% y/y), above estimate of €304.5 million
  • Surface Technologies Adjusted EBITDA:
    • €366 million (-2.1% y/y), exceeded estimate of €355.6 million
  • Agricultural Solutions Adjusted EBITDA:
    • €135 million (-66% y/y), far below estimate of €337.7 million
  • Sales:
    • Total: €16.11 billion, below estimate of €16.72 billion
    • Chemicals: €2.84 billion (+5.9% y/y), top estimate of €2.72 billion
    • Materials: €3.42 billion (-5.3% y/y), below estimate of €3.53 billion
    • Industrial Solutions: €2.15 billion (+4.7% y/y), above estimate of €2.07 billion
    • Surface Technologies: €3.24 billion (-23% y/y), below estimate of €3.65 billion
    • Nutrition & Care: €1.67 billion (-2.6% y/y), below estimate of €1.72 billion
    • Agricultural Solutions: €1.94 billion (-13% y/y), below estimate of €2.11 billion
  • Net Income: €430 million, below estimate of €481.5 million
  • Adjusted EPS: €0.93, above the estimate of €0.82
  • R&D Expenses: €524 million, above estimate of €513 million
  • Net Debt: €21.44 billion, above estimate of €20.62 billion
  • Year Forecast:
    • Sees adjusted EBITDA between €8 billion and €8.6 billion, slightly above estimate of €8.23 billion
    • Free cash flow expectation: €0.1 billion to €0.6 billion in 2024
  • Cost Savings:
    • Targeted €2.1 billion in annual cost savings by the end of 2026
    • Expecting an annual cost reduction of around €800 million by end of 2024, with one-time costs of €550 million
    • Additional measures in Ludwigshafen to save around €1 billion annually by end of 2026, with one-time costs of €1 billion

BASF on Smartkarma

Analyst coverage of BASF on Smartkarma by Joe Jasper indicates a bullish outlook on global equities, with a focus on Materials, Energy, Consumer Discretionary, and Industrials sectors. The research report, titled “Bullish Outlook Intact; Downgrading India; Buys in Materials, Energy, Discretionary, Industrials,” emphasizes the continued positive trend in the MSCI ACWI index. Despite some countries being overextended, market dynamics are seen as healthy, suggesting that any pullbacks could present buying opportunities. In this context, India has been downgraded to market weight, reflecting a shift in the analyst’s perspective on the country’s market positioning.


A look at BASF Smart Scores

FactorScoreMagnitude
Value4
Dividend5
Growth4
Resilience3
Momentum3
OVERALL SMART SCORE3.8

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, BASF shows a positive long-term outlook. With a high score in Dividend and Growth, it indicates a strong performance in these areas. The company’s Value score also reflects well, suggesting solid fundamentals. While Resilience and Momentum scores are slightly lower, the overall outlook remains promising.

BASF SE, a chemical company, operates in various segments providing products for industries such as chemicals, plastics, automotive, agriculture, and more. The company’s focus on dividends, growth, and value, coupled with its diversified product offerings, positions it well for long-term success despite moderate scores in Resilience and Momentum factors.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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