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Chemours (CC) Up 19.6% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Chemours (CC - Free Report) . Shares have added about 19.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Chemours due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Chemours Tops Earnings and Revenue Estimates in Q3
Chemours logged a profit of $76 million or 46 cents per share in the third quarter of 2020, same as the year-ago quarter.
Adjusted earnings were 47 cents per share for the quarter, which surpassed the Zacks Consensus Estimate of 32 cents.
Total revenues fell around 11% year over year to $1,233 million. Sales were hurt by lower volumes across Fluoroproducts and Chemical Solutions segments and reduced global average prices, partly masked by higher volumes in the Titanium Technologies unit. However, revenues beat the Zacks Consensus Estimate of $1,172.1 million.
Segment Highlights
Revenues in the Fluoroproducts segment fell roughly 16% year over year to $533 million in the reported quarter. Volumes fell 11% while price declined 5% year over year. Volumes were affected by weak demand in fluoropolymer products, partly offset by improved customer demand for refrigerants, especially in the automotive sector.
The Chemical Solutions unit recorded sales of $88 million, down 37% year over year. Prices and volumes were hurt by coronavirus-related mine closures in Latin America.
Revenues in the Titanium Technologies division were $612 million, essentially flat year over year. Volumes rose 4% year over year on demand recovery in architectural coatings, laminates and plastics markets. Global average selling prices fell 5% year over year.
Financials
Chemours ended the quarter with cash and cash equivalents of $956 million, up roughly 38% year over year. Long-term debt was $4,063 million, up around 1% year over year.
Cash provided by operating activities was $299 million in the quarter while free cash flow was $252 million. Chemours also repaid the $300 million outstanding balance on its revolving credit facility during the third quarter.
Outlook
Chemours noted that it is well placed to create sustained value through the economic recovery. The company aims to cut costs by $160 million and capital expenditure by roughly $125 million in 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted 6.12% due to these changes.
VGM Scores
At this time, Chemours has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Chemours has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Chemours (CC) Up 19.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Chemours (CC - Free Report) . Shares have added about 19.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Chemours due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Chemours Tops Earnings and Revenue Estimates in Q3
Chemours logged a profit of $76 million or 46 cents per share in the third quarter of 2020, same as the year-ago quarter.
Adjusted earnings were 47 cents per share for the quarter, which surpassed the Zacks Consensus Estimate of 32 cents.
Total revenues fell around 11% year over year to $1,233 million. Sales were hurt by lower volumes across Fluoroproducts and Chemical Solutions segments and reduced global average prices, partly masked by higher volumes in the Titanium Technologies unit. However, revenues beat the Zacks Consensus Estimate of $1,172.1 million.
Segment Highlights
Revenues in the Fluoroproducts segment fell roughly 16% year over year to $533 million in the reported quarter. Volumes fell 11% while price declined 5% year over year. Volumes were affected by weak demand in fluoropolymer products, partly offset by improved customer demand for refrigerants, especially in the automotive sector.
The Chemical Solutions unit recorded sales of $88 million, down 37% year over year. Prices and volumes were hurt by coronavirus-related mine closures in Latin America.
Revenues in the Titanium Technologies division were $612 million, essentially flat year over year. Volumes rose 4% year over year on demand recovery in architectural coatings, laminates and plastics markets. Global average selling prices fell 5% year over year.
Financials
Chemours ended the quarter with cash and cash equivalents of $956 million, up roughly 38% year over year. Long-term debt was $4,063 million, up around 1% year over year.
Cash provided by operating activities was $299 million in the quarter while free cash flow was $252 million. Chemours also repaid the $300 million outstanding balance on its revolving credit facility during the third quarter.
Outlook
Chemours noted that it is well placed to create sustained value through the economic recovery. The company aims to cut costs by $160 million and capital expenditure by roughly $125 million in 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted 6.12% due to these changes.
VGM Scores
At this time, Chemours has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Chemours has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.