Material ETFs Gain On Q3 Earnings

The basic materials sector has been in the spotlight this reporting cycle, About 41.4% of the sector’s total market capitalization has reported so far, with earnings up 26.2% on 10.9% revenue growth.

Let’s dig into the earnings report of some of the well-known players in the sector:

Earnings in Focus

U.S. chemical giant DowDuPont (DWDP - Free Report) reported earnings per share of 74 cents, beating the Zacks Consensus Estimate by 3 cents and improving 20 cents from the year-ago quarter. Revenues rose 10% year over year to $20.12 billion but fell short of the estimated $20.30 billion.

PPG Industries (PPG - Free Report) topped both revenue and earnings estimates. Earnings per share of $1.45 came ahead of the Zacks Consensus Estimate by a couple of cents and revenues of $3.82 billion edged past the estimated $3.79 billion. On a year-over year basis, earnings were down 5% while revenues inched up 1%. On the other hand, Ecolab (ECL - Free Report) missed on both fronts. Earnings of $1.53 per share missed the Zacks Consensus Estimate by a couple of cents but rose 10.9% year over year. Revenues of $3.75 missed the estimated $3.77 billion but improved 5% from the year-ago quarter.

Industrial gas giant Air Products & Chemicals’ (APD - Free Report) earnings per share met the Zacks Consensus Estimate of $2.00 but lagged the same for revenues by $9 million. Earnings and revenues were up 14% and 4.4%, respectively, from the year-ago quarter.

Chemical maker LyondellBasell Industries (LYB - Free Report) came up with earnings of $2.96 per share, crushing the Zacks Consensus Estimate of $2.73. Revenues of $10.15 billion also exceeded the estimated $9.56 billion and grew 19.2% year over year. ETFs in Focus

Given the solid results, the material sector is up 2.5% (aggregate one-day stock market reaction to earnings releases) in response to earnings announcements. The positive trading has also pushed material ETFs higher over the past month. Below, we have highlighted those ETFs that have the top 10 holdings in these chemical titans. All these have a Zacks ETF Rank #3 (Hold), suggesting potential upside in the coming weeks. Below, we highlight them in details:

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