AdvanSix Inc. ASIX is scheduled to release third-quarter 2024 results before the opening bell on Nov. 1.

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The company surpassed Zacks Consensus Estimate for earnings in two of the last four quarters and missed twice. It delivered a trailing four-quarter negative earnings surprise of around 914.5% on average. ASIX pulled off an earnings surprise of 29.2% in the last reported quarter.

ASIX stock has gained 3.7% in the past year compared with the Zacks Chemicals Specialty  industry’s 2% rise.

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Let’s see how things are shaping up for this announcement.

What Do ASIX’s Revenue Estimates Say?

The Zacks Consensus Estimate for sales for the to-be-reported quarter is currently pegged at $357.6 million, which implies a rise of around 10.8% from the year-ago reported number.

The consensus estimate for Nylon sales is pegged at $97.5 million, suggesting a rise of 13.2% year over year. The same for Caprolactam sales is $79 million, indicating an increase of 14.8%.

The Zacks Consensus Estimate for Ammonium Sulfate sales is pinned at $87.2 million, suggesting a year-over-year rise of 3%. The same for Chemical Intermediates sales stands at $103.8 million, indicating an increase of 24.3% year over year.

Factors at Play for ASIX Stock

AdvanSix, which produces nylon 6 resin, chemical intermediates and ammonium sulfate fertilizer, is benefiting from its differentiated product portfolio, exposure to diverse end markets and favorable demand and pricing. It is expected to have gained from improved nylon demand conditions and the growth of its differentiated products in the third quarter.

While the building and construction market is a weak link due to the elevated interest rate environment, nylon demand remains firm in engineered plastics and packaging applications. The favorable agricultural industry fundamentals also bode well for ammonium sulfate. 

ASIX saw higher sales for nylon and ammonium sulfate in the second quarter of 2024, supported by favorable supply and demand dynamics in North America. Favorable pricing trends also supported its performance. The company is expected to have benefited from stronger year-over-year ammonium sulfate pricing in the third quarter on solid demand. 

AdvanSix, in its second-quarter call, said that it expects North American nylon industry spreads to modestly improve through the year due to tighter regional supply and stable end-market demand. Improving nylon industry spreads and a tight global acetone supply and demand environment support its favorable outlook for the second half of 2024.