By Helena Smolak

BASF is scheduled to report results for the third quarter on Wednesday. Here is what you need to know.

SALES FORECAST: The German chemical company is expected to report third-quarter sales of 15.48 billion euros ($16.71 billion), down from 15.73 billion euros for the comparable period a year earlier, according to a company-compiled consensus.

EARNINGS FORECAST: BASF is expected to report 1.67 billion euros in earnings before interest, taxes, depreciation and amortization before special items--the company's preferred key metric--in the quarter, according to the same consensus. This compares with 1.545 billion euros reported a year prior.

Shares in BASF are down 5.4% since the start of the year but rose 11.3% in the past 12 months.

WHAT TO WATCH

--GUIDANCE: BASF's potentially lower third-quarter sales in its material and surface-tech segments due to a weaker automotive industry--one of BASF's biggest end markets--and its suspended vitamin A production could threaten its full-year outlook, Citi analysts said in a note. Investors' key focus will be the magnitude of a likely 2024 outlook cut, also anticipated by the market, JPMorgan analyst Chetan Udeshi and Angelina Glazova said in a note. BASF could cut its 2024 Ebitda before special items guidance to 8.6 billion euros from 8.0 billion euros, with a new midpoint close to 7.8 billion euros, Baader Helvea Equity Research analyst Konstantin Wiechert said in a note.

--STRATEGY SHIFT: The company should see tailwinds from lower interest rates and planned cost savings. However, it is too early to see any benefits from its major portfolio changes--shedding noncore assets, including a potential listing of its agricultural-chemicals business--outlined at the company's capital markets day in September, UBS analysts said in a note.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

October 28, 2024 13:13 ET (17:13 GMT)

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