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Chemours (CC) Down 34.3% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Chemours (CC - Free Report) . Shares have lost about 34.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Chemours due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Chemours’ Earnings Beat, Revenues Miss Estimates in Q4

Chemours reported a loss of $317 million or $1.94 per share in the fourth quarter of 2019 against a profit of $142 million or 81 cents per share a year ago.

Adjusted earnings were 56 cents per share for the quarter, which surpassed the Zacks Consensus Estimate of 43 cents.

Total revenues fell 7.6% year over year to $1,353 million, hurt by reduced volume and prices in the company’s Titanium Technologies and Fluoroproducts segments. Further, revenues lagged the Zacks Consensus Estimate of $1,370.1 million.

Segment Highlights

Revenues in the Fluoroproducts segment fell 5.4% year over year to $614 million in the reported quarter. The decline is attributable to weakness in the electronics and automotive markets as well as the ongoing impact of illegal imports of HFC refrigerants into the European Union.

Revenues in the Chemical Solutions unit were $129 million, down roughly 13% year over year. The company saw lower prices in the quarter mainly due to lower raw material prices.

Revenues in the Titanium Technologies division were $610 million, down 8.4% from the prior-year quarter. The decline is attributable to a lower volume of Ti-Pure titanium dioxide.

2019 Highlights

For 2019, the company witnessed a loss of $52 million or 32 cents per share against a profit of $995 million or $5.45 per share recorded in 2018.

Revenues for the year declined 16.8% year over year to $5,526 million.

Financials

Chemours ended 2019 with cash and cash equivalents of $943 million, down 27.4% year over year. Long-term debt was $4,026 million, up 1.7% year over year.

Cash flows provided by operating activities were $400 million for the fourth quarter of 2019, up 54.4% year over year.

Outlook

For 2020, Chemours projects adjusted EBITDA of $1.05-$1.25 billion.

Capital expenditure for the year is anticipated to be approximately $400 million, while free cash flow is projected to be more than $350 million.

Adjusted earnings per share are forecast $2.60-$3.55 for 2020.


 

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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