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Chemours (CC) Earnings and Revenues Top Estimates in Q1
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The Chemours Company (CC - Free Report) posted a profit of $234 million or $1.43 per share in the first quarter of 2022, up from a profit of $96 million or 57 cents in the year-ago quarter.
Barring one-time items, earnings came in at $1.46 per share for the reported quarter, topping the Zacks Consensus Estimate of 92 cents.
Net sales rose around 23% year over year to $1,764 million, beating the Zacks Consensus Estimate of $1,543.4 million. Volumes and prices contributed favorably to the top line growth in the quarter. The company, however, faced headwinds from raw material cost inflation and a challenging logistics environment.
The Chemours Company Price, Consensus and EPS Surprise
The Titanium Technologies division logged revenues of $928 million in the quarter, up 28% year over year. Volumes rose 6% year over year while prices increased 24%. Volumes were driven by steady demand across all end-markets and regions notwithstanding the ore supply challenges. Prices rose due to contractual price changes and increases in the company’s Flex and Distribution channels.
Revenues in the Thermal & Specialized Solutions segment went up 40% year over year to $425 million in the reported quarter. Volumes increased 1% year over year on continued adoption of Opteon refrigerants, partly offset by the softness in auto OEM demand due to semiconductor shortages. Price contributed 40% to the division’s sales growth.
Revenues in the Advanced Performance Materials unit were $385 million, up roughly 16% year over year. Volume and price contributed 3% and 15%, respectively, to the sales growth. Volumes were driven by increased customer demand across nearly all regions and markets.
Chemours completed the sale of its Mining Solutions business to Draslovka in late 2021. The remaining Chemical Solutions business in the Other segment recorded sales of $26 million in the first quarter.
Financials
Chemours ended the quarter with cash and cash equivalents of $1,145 million, up roughly 14% year over year. Long-term debt was $3,692 million, down around 7% year over year.
Cash provided by operating activities was $2 million for the reported quarter, down from $39 million in the year-ago quarter.
The company completed $146 million of share repurchases in the first quarter and also approved a new share repurchase authorization of $750 million.
Outlook
Chemours now sees adjusted EBITDA in the range of $1.475-$1.575 billion for 2022, up from $1.3-$1.425 billion it expected earlier.
Free cash flow for 2022 is now forecast to be more than $550 million, up from $500 million it expected earlier.
Price Performance
Shares of Chemours have gained 23.4% in the past year, outperforming the industry’s decline of 7.7%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Chemours currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Steel Dynamics, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has rallied around 45% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
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 16%, on average. CMC has gained around 31% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 39% in a year.
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Chemours (CC) Earnings and Revenues Top Estimates in Q1
The Chemours Company (CC - Free Report) posted a profit of $234 million or $1.43 per share in the first quarter of 2022, up from a profit of $96 million or 57 cents in the year-ago quarter.
Barring one-time items, earnings came in at $1.46 per share for the reported quarter, topping the Zacks Consensus Estimate of 92 cents.
Net sales rose around 23% year over year to $1,764 million, beating the Zacks Consensus Estimate of $1,543.4 million. Volumes and prices contributed favorably to the top line growth in the quarter. The company, however, faced headwinds from raw material cost inflation and a challenging logistics environment.
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 revenues of $928 million in the quarter, up 28% year over year. Volumes rose 6% year over year while prices increased 24%. Volumes were driven by steady demand across all end-markets and regions notwithstanding the ore supply challenges. Prices rose due to contractual price changes and increases in the company’s Flex and Distribution channels.
Revenues in the Thermal & Specialized Solutions segment went up 40% year over year to $425 million in the reported quarter. Volumes increased 1% year over year on continued adoption of Opteon refrigerants, partly offset by the softness in auto OEM demand due to semiconductor shortages. Price contributed 40% to the division’s sales growth.
Revenues in the Advanced Performance Materials unit were $385 million, up roughly 16% year over year. Volume and price contributed 3% and 15%, respectively, to the sales growth. Volumes were driven by increased customer demand across nearly all regions and markets.
Chemours completed the sale of its Mining Solutions business to Draslovka in late 2021. The remaining Chemical Solutions business in the Other segment recorded sales of $26 million in the first quarter.
Financials
Chemours ended the quarter with cash and cash equivalents of $1,145 million, up roughly 14% year over year. Long-term debt was $3,692 million, down around 7% year over year.
Cash provided by operating activities was $2 million for the reported quarter, down from $39 million in the year-ago quarter.
The company completed $146 million of share repurchases in the first quarter and also approved a new share repurchase authorization of $750 million.
Outlook
Chemours now sees adjusted EBITDA in the range of $1.475-$1.575 billion for 2022, up from $1.3-$1.425 billion it expected earlier.
Free cash flow for 2022 is now forecast to be more than $550 million, up from $500 million it expected earlier.
Price Performance
Shares of Chemours have gained 23.4% in the past year, outperforming the industry’s decline of 7.7%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Chemours currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Commercial Metals Company (CMC - Free Report) .
Steel Dynamics, sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward over the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average being roughly 2.5%. STLD has rallied around 45% in a year.
Commercial Metals, carrying a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has been revised 31.9% upward over the past 60 days.
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 16%, on average. CMC has gained around 31% in a year.
AdvanSix, carrying a Zacks Rank #1, has an expected earnings growth rate of 63.4% for the current year. ASIX's consensus estimate for current-year earnings has been revised 31.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 23.6%, on average. ASIX has rallied around 39% in a year.