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Chemours (CC) to Report Q4 Earnings: What's in the Cards?
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The Chemours Company (CC - Free Report) is set to release fourth-quarter 2021 results after the bell on Feb 10. It is likely to have gained from higher customer adoption of the Opteon platform, favorable prices and efforts to reduce costs. However, a weaker automotive production is likely to have affected its performance. The company is expected to have faced some headwinds from raw material cost inflation in the quarter.
The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 34.2%, on average. The company delivered an earnings surprise of 28.3% in the last reported quarter.
Chemours’ shares have increased 19.8% in the past year compared with an 8.3% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Chemours this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Earnings ESP for Chemours is +10.4%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at 87 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Chemours carries a Zacks Rank #3.
What Do Estimates Say?
The Zacks Consensus Estimate for Chemours’ fourth-quarter revenues is currently pegged at $1,491 million, which indicates an increase of about 15% on a year-over-year basis.
The Zacks Consensus Estimate for revenues in the Chemical Solutions unit is pegged at $60 million, calling for a roughly 38.8% decline on a sequential comparison basis.
The Zacks Consensus Estimate for revenues in the Titanium Technologies division is pegged at $830 million, which suggests a decline of 8.6% sequentially. The same for the Thermal & Specialized Solutions segment is pinned at $289 million, reflecting a 9.1% sequential decline.
The consensus estimate for Advanced Performance Materials unit stands at $341 million, indicating a decline of 4.2% sequentially.
Some Factors at Play
Chemours is likely to have benefited from cost-cutting measures in the fourth quarter. It has undertaken various measures to cut costs like reducing overhead, discretionary spending and capital expenditures. These measures are likely to have helped the company generate strong cash flows and margins in the quarter to be reported. Chemours is likely to have benefited from favorable prices in certain products.
The company is likely to have gained from the increasing adoption of the Opteon platform in the quarter. It is witnessing higher demand for Opteon in mobile and stationary applications. Its Thermal & Specialized Solutions segment is likely to have benefited from strong demand in refrigerants across most regions.
Chemours is likely to have faced headwinds from weaker automotive production due to the global semiconductor shortage resulting from the pandemic in the fourth quarter. Subdued auto build rates might have affected volumes in the quarter.
The company has been facing headwinds from global logistics and supply chain issues. It is being challenged by raw material cost inflation due to supply constraints. Some impact from these headwinds is likely to have persisted in the to-be-reported quarter.
Here are some other companies in the basic materials space you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Huntsman's fourth-quarter earnings has been revised 0.8% upward in the past 60 days. The consensus estimate for HUN’s earnings for the quarter is currently pegged at 88 cents.
CF Industries Holdings, Inc. (CF - Free Report) , slated to release earnings on Feb 15, has an Earnings ESP of +7.88% and carries a Zacks Rank #3.
The consensus estimate for CF Industries' fourth-quarter earnings has been revised 31.5% upward in the past 60 days. The Zacks Consensus Estimate for CF’s quarterly earnings is pegged at $3.41.
Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on Feb 16, has an Earnings ESP of +1.23% and sports a Zacks Rank #1.
The Zacks Consensus Estimate for Nutrien’s fourth-quarter earnings has been revised 17.4% upward in the past 60 days. The consensus estimate for NTR’s earnings for the quarter is currently pegged at $2.30.
Image: Bigstock
Chemours (CC) to Report Q4 Earnings: What's in the Cards?
The Chemours Company (CC - Free Report) is set to release fourth-quarter 2021 results after the bell on Feb 10. It is likely to have gained from higher customer adoption of the Opteon platform, favorable prices and efforts to reduce costs. However, a weaker automotive production is likely to have affected its performance. The company is expected to have faced some headwinds from raw material cost inflation in the quarter.
The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 34.2%, on average. The company delivered an earnings surprise of 28.3% in the last reported quarter.
Chemours’ shares have increased 19.8% in the past year compared with an 8.3% rise of the industry.
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Chemours this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Earnings ESP for Chemours is +10.4%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at 87 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Chemours carries a Zacks Rank #3.
What Do Estimates Say?
The Zacks Consensus Estimate for Chemours’ fourth-quarter revenues is currently pegged at $1,491 million, which indicates an increase of about 15% on a year-over-year basis.
The Zacks Consensus Estimate for revenues in the Chemical Solutions unit is pegged at $60 million, calling for a roughly 38.8% decline on a sequential comparison basis.
The Zacks Consensus Estimate for revenues in the Titanium Technologies division is pegged at $830 million, which suggests a decline of 8.6% sequentially. The same for the Thermal & Specialized Solutions segment is pinned at $289 million, reflecting a 9.1% sequential decline.
The consensus estimate for Advanced Performance Materials unit stands at $341 million, indicating a decline of 4.2% sequentially.
Some Factors at Play
Chemours is likely to have benefited from cost-cutting measures in the fourth quarter. It has undertaken various measures to cut costs like reducing overhead, discretionary spending and capital expenditures. These measures are likely to have helped the company generate strong cash flows and margins in the quarter to be reported. Chemours is likely to have benefited from favorable prices in certain products.
The company is likely to have gained from the increasing adoption of the Opteon platform in the quarter. It is witnessing higher demand for Opteon in mobile and stationary applications. Its Thermal & Specialized Solutions segment is likely to have benefited from strong demand in refrigerants across most regions.
Chemours is likely to have faced headwinds from weaker automotive production due to the global semiconductor shortage resulting from the pandemic in the fourth quarter. Subdued auto build rates might have affected volumes in the quarter.
The company has been facing headwinds from global logistics and supply chain issues. It is being challenged by raw material cost inflation due to supply constraints. Some impact from these headwinds is likely to have persisted in the to-be-reported quarter.
The Chemours Company Price and EPS Surprise
The Chemours Company price-eps-surprise | The Chemours Company Quote
Other Stocks That Warrant a Look
Here are some other companies in the basic materials space you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Huntsman Corporation (HUN - Free Report) , scheduled to release earnings on Feb 15, has an Earnings ESP of +0.09% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Huntsman's fourth-quarter earnings has been revised 0.8% upward in the past 60 days. The consensus estimate for HUN’s earnings for the quarter is currently pegged at 88 cents.
CF Industries Holdings, Inc. (CF - Free Report) , slated to release earnings on Feb 15, has an Earnings ESP of +7.88% and carries a Zacks Rank #3.
The consensus estimate for CF Industries' fourth-quarter earnings has been revised 31.5% upward in the past 60 days. The Zacks Consensus Estimate for CF’s quarterly earnings is pegged at $3.41.
Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on Feb 16, has an Earnings ESP of +1.23% and sports a Zacks Rank #1.
The Zacks Consensus Estimate for Nutrien’s fourth-quarter earnings has been revised 17.4% upward in the past 60 days. The consensus estimate for NTR’s earnings for the quarter is currently pegged at $2.30.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.