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Kronos Worldwide (KRO) Up 24.1% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Kronos Worldwide (KRO - Free Report) . Shares have added about 24.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kronos Worldwide 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.
Kronos Worldwide’s Q1 Earnings and Sales Beat Estimates
Kronos Worldwide recorded profits of $57.5 million or 50 cents per share in first-quarter 2022, up from $19.6 million or 17 cents in the year-ago quarter. The figure topped the Zacks Consensus Estimate of 28 cents per share.
The bottom line in the reported quarter was driven by higher income from operations resulting from increased average TiO2 selling prices.
Net sales rose 21% year over year to $562.9 million, driven by higher average TiO2 selling prices and volumes. The top line surpassed the Zacks Consensus Estimate of $504 million.
Volumes and Pricing
TiO2 production volumes were up 6% year over year in the first quarter. TiO2 sales volumes increased 2% year over year, helped by sustained high demand and improvements in delivery and distribution networks.
TiO2 segment profit increased around 128% to $86.8 million year over year in the reported quarter. This upside was driven by a rise in average TiO2 selling prices, which were partly offset by increased production costs, including higher costs for raw materials and energy.
Average TiO2 selling prices rose 7% year over year in the quarter.
Financials
Kronos Worldwide ended the quarter with cash and cash equivalents of $350 million, down roughly 6% year over year. Long-term debt was $443.8 million, a roughly 5% year-over-year decline.
Outlook
Kronos expects global demand for consumer products to remain strong through the balance of 2022. It is seeing certain disruptions in global supply chains, including raw materials constraints as well as delays in transportation and logistics. It also expects feedstock as well as production costs, including raw material and related shipping costs and considerably higher energy and utility costs, to rise through the remainder of 2022. Based on strong demand, TiO2 selling prices are projected to increase through the balance of the year.
The company expects its sales and income from operations for 2022 to be higher on a year-over-year basis. However, its margins are expected to be affected by cost increases.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 54.54% due to these changes.
VGM Scores
Currently, Kronos Worldwide has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 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 trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Kronos Worldwide has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Kronos Worldwide is part of the Zacks Chemical - Diversified industry. Over the past month, Olin (OLN - Free Report) , a stock from the same industry, has gained 4.3%. The company reported its results for the quarter ended March 2022 more than a month ago.
Olin reported revenues of $2.46 billion in the last reported quarter, representing a year-over-year change of +28.3%. EPS of $2.48 for the same period compares with $1.53 a year ago.
Olin is expected to post earnings of $2.59 per share for the current quarter, representing a year-over-year change of +49.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
Olin has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Kronos Worldwide (KRO) Up 24.1% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Kronos Worldwide (KRO - Free Report) . Shares have added about 24.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kronos Worldwide 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.
Kronos Worldwide’s Q1 Earnings and Sales Beat Estimates
Kronos Worldwide recorded profits of $57.5 million or 50 cents per share in first-quarter 2022, up from $19.6 million or 17 cents in the year-ago quarter. The figure topped the Zacks Consensus Estimate of 28 cents per share.
The bottom line in the reported quarter was driven by higher income from operations resulting from increased average TiO2 selling prices.
Net sales rose 21% year over year to $562.9 million, driven by higher average TiO2 selling prices and volumes. The top line surpassed the Zacks Consensus Estimate of $504 million.
Volumes and Pricing
TiO2 production volumes were up 6% year over year in the first quarter. TiO2 sales volumes increased 2% year over year, helped by sustained high demand and improvements in delivery and distribution networks.
TiO2 segment profit increased around 128% to $86.8 million year over year in the reported quarter. This upside was driven by a rise in average TiO2 selling prices, which were partly offset by increased production costs, including higher costs for raw materials and energy.
Average TiO2 selling prices rose 7% year over year in the quarter.
Financials
Kronos Worldwide ended the quarter with cash and cash equivalents of $350 million, down roughly 6% year over year. Long-term debt was $443.8 million, a roughly 5% year-over-year decline.
Outlook
Kronos expects global demand for consumer products to remain strong through the balance of 2022. It is seeing certain disruptions in global supply chains, including raw materials constraints as well as delays in transportation and logistics. It also expects feedstock as well as production costs, including raw material and related shipping costs and considerably higher energy and utility costs, to rise through the remainder of 2022. Based on strong demand, TiO2 selling prices are projected to increase through the balance of the year.
The company expects its sales and income from operations for 2022 to be higher on a year-over-year basis. However, its margins are expected to be affected by cost increases.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 54.54% due to these changes.
VGM Scores
Currently, Kronos Worldwide has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 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 trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Kronos Worldwide has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Kronos Worldwide is part of the Zacks Chemical - Diversified industry. Over the past month, Olin (OLN - Free Report) , a stock from the same industry, has gained 4.3%. The company reported its results for the quarter ended March 2022 more than a month ago.
Olin reported revenues of $2.46 billion in the last reported quarter, representing a year-over-year change of +28.3%. EPS of $2.48 for the same period compares with $1.53 a year ago.
Olin is expected to post earnings of $2.59 per share for the current quarter, representing a year-over-year change of +49.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
Olin has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.