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Will Titanium Technologies Unit Hurt Chemours (CC) Q2 Earnings?
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The Chemours Company (CC - Free Report) is scheduled to come up with second-quarter 2023 results after the bell on Jul 27. The company is expected to have faced headwinds from slow demand recovery in the Titanium Technologies segment in the second quarter. Weaker year-over-year volumes in this unit due to demand softness are likely to have been a drag on its performance in the quarter.
Weak Demand to Dent Titanium Technologies
Chemours’ Titanium Technologies segment, which accounted for about half of its overall revenues in 2022, is hamstrung by slow demand recovery. This is expected to have weighed on the segment’s results in the June quarter. Softer demand in most regions is expected to have hurt the division’s sales, offsetting the favorable impact of price increase actions to offset cost inflation.
While destocking in China and Europe has largely ended, the pace of demand recovery is expected to have been modest in the quarter to be reported, given the weak global economic recovery and continued macroeconomic uncertainties. CC is also likely to have witnessed some customer destocking in North America in the quarter. This is expected to have adversely impacted volumes on a year-over-year basis in the Titanium Technologies segment in the second quarter.
Weaker performance in Titanium Technologies is expected to have offset continued momentum in the Thermal & Specialized Solutions segment on strong adoption of the Opteon platform as well as improved demand for high-value products in the Advanced Performance Materials segment.
Our estimate for second-quarter sales for the Titanium Technologies unit stands at $784.1 million, suggesting a 19% year-over-year decline.
The Zacks Consensus Estimate for second-quarter consolidated revenues for Chemours is currently pegged at $1,747 million, reflecting a year-over-year decline of 8.8%. The consensus estimate for earnings is $1.09, which indicates a 42.3% decline from the prior-year reported number.
Zacks Model
Our proven model predicts an earnings beat for Chemours this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Chemours is -3.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Chemours currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 55 cents.
Axalta Coating Systems Ltd. (AXTA - Free Report) , which is slated to release its earnings on Aug 1, has an Earnings ESP of +6.02%.
The consensus estimate for AXTA’s earnings for the second quarter is currently pegged at 39 cents. It currently carries a Zacks Rank #2.
Kinross Gold Corporation (KGC - Free Report) , which is scheduled to release earnings on Aug 2, has an Earnings ESP of +5.56% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for earnings for KGC for the second quarter is pegged at 9 cents.
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Will Titanium Technologies Unit Hurt Chemours (CC) Q2 Earnings?
The Chemours Company (CC - Free Report) is scheduled to come up with second-quarter 2023 results after the bell on Jul 27. The company is expected to have faced headwinds from slow demand recovery in the Titanium Technologies segment in the second quarter. Weaker year-over-year volumes in this unit due to demand softness are likely to have been a drag on its performance in the quarter.
Weak Demand to Dent Titanium Technologies
Chemours’ Titanium Technologies segment, which accounted for about half of its overall revenues in 2022, is hamstrung by slow demand recovery. This is expected to have weighed on the segment’s results in the June quarter. Softer demand in most regions is expected to have hurt the division’s sales, offsetting the favorable impact of price increase actions to offset cost inflation.
While destocking in China and Europe has largely ended, the pace of demand recovery is expected to have been modest in the quarter to be reported, given the weak global economic recovery and continued macroeconomic uncertainties. CC is also likely to have witnessed some customer destocking in North America in the quarter. This is expected to have adversely impacted volumes on a year-over-year basis in the Titanium Technologies segment in the second quarter.
Weaker performance in Titanium Technologies is expected to have offset continued momentum in the Thermal & Specialized Solutions segment on strong adoption of the Opteon platform as well as improved demand for high-value products in the Advanced Performance Materials segment.
Our estimate for second-quarter sales for the Titanium Technologies unit stands at $784.1 million, suggesting a 19% year-over-year decline.
The Chemours Company Price and Consensus
The Chemours Company price-consensus-chart | The Chemours Company Quote
Overall Expectations
The Zacks Consensus Estimate for second-quarter consolidated revenues for Chemours is currently pegged at $1,747 million, reflecting a year-over-year decline of 8.8%. The consensus estimate for earnings is $1.09, which indicates a 42.3% decline from the prior-year reported number.
Zacks Model
Our proven model predicts an earnings beat for Chemours this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Chemours is -3.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Chemours currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Agnico Eagle Mines Limited (AEM - Free Report) , which is scheduled to release earnings on Jul 26, has an Earnings ESP of +3.34% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AEM’s earnings for the second quarter is currently pegged at 55 cents.
Axalta Coating Systems Ltd. (AXTA - Free Report) , which is slated to release its earnings on Aug 1, has an Earnings ESP of +6.02%.
The consensus estimate for AXTA’s earnings for the second quarter is currently pegged at 39 cents. It currently carries a Zacks Rank #2.
Kinross Gold Corporation (KGC - Free Report) , which is scheduled to release earnings on Aug 2, has an Earnings ESP of +5.56% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for earnings for KGC for the second quarter is pegged at 9 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.