Why Is Olin (OLN) Up 6.1% Since Last Earnings Report?

A month has gone by since the last earnings report for Olin (OLN). Shares have added about 6.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Olin due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.Olin Reports Loss in Q2, Beats on Sales Amid Market ChallengesOlin posted a second-quarter 2025 loss of $1.3 million, or a loss of a penny per share. This compares to a profit of $74.2 million or 62 cents in the year-ago quarter. Barring one-time items, earnings came in at 5 cents per share.The chemical maker’s revenues rose roughly 6.9% year over year to $1,758.3 million in the quarter. It beat the Zacks Consensus Estimate of $1,669.1 million.Segment ReviewChlor Alkali Products and Vinyls: In the second quarter of 2025, revenues amounted to $979.5 million, which rose around 6.4% year over year. The reported figure beat the consensus estimate of $955.4 million. The upside in sales was primarily due to increased volume. Segment earnings were $64.9 million compared with $99.3 million in the second quarter of 2024. Epoxy: Revenues in the division went up around 4.2% year over year to $331.2 million. It beat the consensus estimate of $305.9 million.Winchester: Revenues rose around 10.2% year over year to $447.6 million. The increase in sales was primarily due to higher military sales and military project revenues, partly offset by reduced commercial ammunition sales. It beat the consensus estimate of $401.9 million.FinancialsThe cash balance at the end of the second quarter was $223.8 million. At the end of the reported quarter, Olin had roughly $2.8 billion in net debt. During the second quarter, roughly 0.5 million shares of common stock were repurchased for $10.1 million. As of June 30, 2025, Olin had approximately $2 billion in share repurchase authorizations.OutlookGiven the continued challenges in the markets, the possibility of rising costs and general uncertainty related to tariffs, Olin anticipates its adjusted EBITDA for the third quarter of 2025 to be within the range of $170 million to $210 million. The company maintains its commitment to a disciplined capital allocation strategy, with a strong emphasis on maximizing cash generation. This outlook is underpinned by Olin’s solid financial foundation.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.The consensus estimate has shifted -32.61% due to these changes.VGM ScoresCurrently, Olin has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Olin has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Olin Corporation (OLN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks