FMP

FMP

Westlake Corporation's (NYSE:WLK) Financial Performance and BMO Capital's Rating Adjustment

  • BMO Capital downgrades Westlake Corporation (NYSE:WLK) to "Market Perform" with a revised price target from $91 to $83.
  • Westlake reports a revenue of $2.84 billion in Q3 2025, a 9% decline year-over-year, missing the Zacks Consensus Estimate.
  • The company's EPS saw a significant drop to a loss of $0.29, far below the consensus estimate and marking a substantial negative surprise of 261.11%.

Westlake Corporation (NYSE:WLK) is a prominent player in the chemical manufacturing industry, producing essential materials for various sectors. On November 4, 2025, BMO Capital adjusted its rating for Westlake to "Market Perform," maintaining a "hold" action. At that time, the stock was priced at $68.28. BMO Capital also revised Westlake's price target, lowering it from $91 to $83.

Westlake's recent Q3 2025 earnings call, held on October 30, 2025, provided insights into its financial performance. The company reported a revenue of $2.84 billion, marking a 9% decline from the previous year. This figure fell short of the Zacks Consensus Estimate of $2.94 billion, resulting in a negative surprise of 3.44%. Such revenue shortfalls can impact investor confidence and stock performance.

The company's earnings per share (EPS) were reported at a loss of $0.29, a significant drop from the $1.41 EPS recorded in the same quarter last year. This performance was far below the consensus estimate of $0.18, leading to a substantial negative surprise of 261.11%. Over the past four quarters, Westlake has consistently failed to meet consensus EPS estimates, which may have influenced BMO Capital's decision to adjust its rating and price target.

Westlake's stock price, currently at $68.28, reflects a decrease of 0.77% or $0.53. The stock has fluctuated between a low of $67.87 and a high of $70.62 today. Over the past year, it has reached a high of $139.59 and a low of $65.77. The company's market capitalization stands at approximately $8.76 billion, with a trading volume of 1,342,870 shares on the NYSE. These metrics are crucial for investors as they assess the company's financial health and project future stock price performance.