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Why Is Chemours (CC) Up 18.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Chemours (CC - Free Report) . Shares have added about 18.5% 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 its most recent earnings report in order to get a better handle on the important drivers.
Chemours’ Earnings and Revenues Beat Estimates in Q1
Chemours posted a profit of $96 million or 57 cents per share in the first quarter of 2021 compared with a profit of $100 million or 61 cents per share in the year-ago quarter.
Adjusted earnings were 71 cents per share for the quarter, which surpassed the Zacks Consensus Estimate of 68 cents.
Net sales increased around 10% year over year to $1,436 million. The top line beat the Zacks Consensus Estimate of $1,383.4 million. Sales for the quarter included an unfavorable 1% portfolio impact from the shutdown of the aniline business.
Sales rose 7% on a sequential-comparison basis as global macroeconomic recovery led to higher sales in the Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials and Chemicals Solutions units.
Segment Highlights
The Titanium Technologies division raked in revenues of $723 million in the quarter, up around 18% year over year. Volumes rose 16% year over year owing to strong demand in all regions and end-markets, despite challenges in logistics and issues caused by winter storm Uri.
Revenues in the Thermal & Specialized Solutions segment inched down 1% year over year to $304 million in the reported quarter. Volumes increased 4% year over year. The company witnessed higher Opteon volume drive growth in the quarter from improved adoption, but faced headwinds from reduced global auto production.
Revenues in the Advanced Performance Materials unit were $333 million, up around 14% year over year. The increase in year-over-year sales was driven by demand recovery across nearly all end-markets and regions, led by Semiconductors, Electronics, Transportation and Oil &Gas.
The Chemical Solutions unit recorded sales of $76 million, down 17% year over year, impacted by portfolio changes. Glycolic Acid and Vazo volumes dropped year over year due to headwinds faced from logistics and Uri. Mining solutions had strong results, which were offset by incremental costs associated with Uri.
Financials
Chemours ended the quarter with cash and cash equivalents of $1,008 million, down roughly 8.7% sequentially. Long-term debt was $3,970 million, almost in-line with the previous-quarter’s levels.
Cash provided by operating activities was $39 million at the end of the first quarter, down from $44 million in the prior-year quarter. Free cash flow for the first quarter was negative $21 million compared with negative $62 million in the prior-year quarter.
Outlook
Chemours expects adjusted EBITDA in the band of $1-$1.15 billion in 2021. It also sees adjusted earnings per share of between $2.84 and $3.56 for the year, up from the prior view of $2.40 and $3.12. The company also expects free cash flow of more than $450 million for the year.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 34.92% due to these changes.
VGM Scores
At this time, Chemours has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise 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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Why Is Chemours (CC) Up 18.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Chemours (CC - Free Report) . Shares have added about 18.5% 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 its most recent earnings report in order to get a better handle on the important drivers.
Chemours’ Earnings and Revenues Beat Estimates in Q1
Chemours posted a profit of $96 million or 57 cents per share in the first quarter of 2021 compared with a profit of $100 million or 61 cents per share in the year-ago quarter.
Adjusted earnings were 71 cents per share for the quarter, which surpassed the Zacks Consensus Estimate of 68 cents.
Net sales increased around 10% year over year to $1,436 million. The top line beat the Zacks Consensus Estimate of $1,383.4 million. Sales for the quarter included an unfavorable 1% portfolio impact from the shutdown of the aniline business.
Sales rose 7% on a sequential-comparison basis as global macroeconomic recovery led to higher sales in the Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials and Chemicals Solutions units.
Segment Highlights
The Titanium Technologies division raked in revenues of $723 million in the quarter, up around 18% year over year. Volumes rose 16% year over year owing to strong demand in all regions and end-markets, despite challenges in logistics and issues caused by winter storm Uri.
Revenues in the Thermal & Specialized Solutions segment inched down 1% year over year to $304 million in the reported quarter. Volumes increased 4% year over year. The company witnessed higher Opteon volume drive growth in the quarter from improved adoption, but faced headwinds from reduced global auto production.
Revenues in the Advanced Performance Materials unit were $333 million, up around 14% year over year. The increase in year-over-year sales was driven by demand recovery across nearly all end-markets and regions, led by Semiconductors, Electronics, Transportation and Oil &Gas.
The Chemical Solutions unit recorded sales of $76 million, down 17% year over year, impacted by portfolio changes. Glycolic Acid and Vazo volumes dropped year over year due to headwinds faced from logistics and Uri. Mining solutions had strong results, which were offset by incremental costs associated with Uri.
Financials
Chemours ended the quarter with cash and cash equivalents of $1,008 million, down roughly 8.7% sequentially. Long-term debt was $3,970 million, almost in-line with the previous-quarter’s levels.
Cash provided by operating activities was $39 million at the end of the first quarter, down from $44 million in the prior-year quarter. Free cash flow for the first quarter was negative $21 million compared with negative $62 million in the prior-year quarter.
Outlook
Chemours expects adjusted EBITDA in the band of $1-$1.15 billion in 2021. It also sees adjusted earnings per share of between $2.84 and $3.56 for the year, up from the prior view of $2.40 and $3.12. The company also expects free cash flow of more than $450 million for the year.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 34.92% due to these changes.
VGM Scores
At this time, Chemours has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Chemours has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.