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Chemours (CC) Earnings Miss Estimates, Revenues Top in Q4
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The Chemours Company (CC - Free Report) posted a profit of $233 million or $1.40 per share in the fourth quarter of 2021, up from a profit of $19 million or 11 cents in the year-ago quarter.
Barring one-time items, earnings came in at 81 cents per share for the reported quarter, missing the Zacks Consensus Estimate of 87 cents.
Net sales rose around 18% year over year to $1,575 million, beating the Zacks Consensus Estimate of $1,490.7 million. Volumes and prices contributed favorably to the top line growth in the quarter.
The Chemours Company Price, Consensus and EPS Surprise
The Titanium Technologies division logged in revenues of $865 million in the quarter, up around 25% year over year. Volumes rose 6% year over year while prices increased 19% on the back of strength across all three of the company’s Ti-Pure selling channels.
Revenues in the Thermal & Specialized Solutions segment went up 8% year over year to $295 million in the reported quarter. Volumes fell 11% year over year as reduced auto OEM demand due to semiconductor shortages more than offset higher demand in other markets. The company witnessed strong adoption of Opteon refrigerants. Price contributed 19% to the division’s sales growth.
Revenues in the Advanced Performance Materials unit were $346 million, up roughly 24% year over year. The increase was driven by higher demand across the portfolio. Volume and price contributed 15% and 10%, respectively, to the sales growth.
The Chemical Solutions unit recorded sales of $69 million, down 27% year over year. The benefits of improved prices and volumes were more than offset by the impact of portfolio changes.
FY21 Results
Earnings for full-year 2021 were $3.60 per share, up from $1.32 per share a year ago. Net sales went up 28% year over year to $6,345 million on a rebound in global demand.
Financials
Chemours ended the year with cash and cash equivalents of $1,451 million, up roughly 31% year over year. Long-term debt was $3,724 million, down around 7% year over year.
Cash provided by operating activities was $820 million for 2021. Free cash flow for the full year was $543 million.
Outlook
Chemours sees adjusted EBITDA in the range of $1.3-$1.425 billion for 2022. The company also expects adjusted earnings per share in the band of $4.07-$4.70 for the year. It noted that the guidance reflects its belief in a sustained economic recovery from the pandemic-led challenges, and a normalization of supply chains early in 2022.
Free cash flow for 2022 is forecast to be more than $500 million.
Price Performance
Shares of Chemours have gained 20.5% in the past year, outperforming the industry’s growth of 12.6%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Chemours currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Albemarle Corporation (ALB - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 22.7% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 61% in a year.
Albemarle, carrying a Zacks Rank #1, has an expected earnings growth rate of 51.5% for the current year. ALB's consensus estimate for the current year has been revised 5.6% upward over the past 60 days.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB shares have gained around 48% in a year.
AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 65% in a year.
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Chemours (CC) Earnings Miss Estimates, Revenues Top in Q4
The Chemours Company (CC - Free Report) posted a profit of $233 million or $1.40 per share in the fourth quarter of 2021, up from a profit of $19 million or 11 cents in the year-ago quarter.
Barring one-time items, earnings came in at 81 cents per share for the reported quarter, missing the Zacks Consensus Estimate of 87 cents.
Net sales rose around 18% year over year to $1,575 million, beating the Zacks Consensus Estimate of $1,490.7 million. Volumes and prices contributed favorably to the top line growth in the quarter.
The Chemours Company Price, Consensus and EPS Surprise
The Chemours Company price-consensus-eps-surprise-chart | The Chemours Company Quote
Segment Highlights
The Titanium Technologies division logged in revenues of $865 million in the quarter, up around 25% year over year. Volumes rose 6% year over year while prices increased 19% on the back of strength across all three of the company’s Ti-Pure selling channels.
Revenues in the Thermal & Specialized Solutions segment went up 8% year over year to $295 million in the reported quarter. Volumes fell 11% year over year as reduced auto OEM demand due to semiconductor shortages more than offset higher demand in other markets. The company witnessed strong adoption of Opteon refrigerants. Price contributed 19% to the division’s sales growth.
Revenues in the Advanced Performance Materials unit were $346 million, up roughly 24% year over year. The increase was driven by higher demand across the portfolio. Volume and price contributed 15% and 10%, respectively, to the sales growth.
The Chemical Solutions unit recorded sales of $69 million, down 27% year over year. The benefits of improved prices and volumes were more than offset by the impact of portfolio changes.
FY21 Results
Earnings for full-year 2021 were $3.60 per share, up from $1.32 per share a year ago. Net sales went up 28% year over year to $6,345 million on a rebound in global demand.
Financials
Chemours ended the year with cash and cash equivalents of $1,451 million, up roughly 31% year over year. Long-term debt was $3,724 million, down around 7% year over year.
Cash provided by operating activities was $820 million for 2021. Free cash flow for the full year was $543 million.
Outlook
Chemours sees adjusted EBITDA in the range of $1.3-$1.425 billion for 2022. The company also expects adjusted earnings per share in the band of $4.07-$4.70 for the year. It noted that the guidance reflects its belief in a sustained economic recovery from the pandemic-led challenges, and a normalization of supply chains early in 2022.
Free cash flow for 2022 is forecast to be more than $500 million.
Price Performance
Shares of Chemours have gained 20.5% in the past year, outperforming the industry’s growth of 12.6%.
Zacks Rank & Key Picks
Chemours currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Commercial Metals Company (CMC - Free Report) , Albemarle Corporation (ALB - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Commercial Metals, sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 62% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 22.7% upward over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 61% in a year.
Albemarle, carrying a Zacks Rank #1, has an expected earnings growth rate of 51.5% for the current year. ALB's consensus estimate for the current year has been revised 5.6% upward over the past 60 days.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB shares have gained around 48% in a year.
AdvanSix, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 65% in a year.