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Kronos Worldwide (KRO) Down 5.9% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Kronos Worldwide (KRO - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Kronos Worldwide due for a breakout? 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 drivers.
Kronos Worldwide’s Q1 Earnings Miss Estimates, Sales Beat
Kronos Worldwide recorded profits of $19.6 million or 17 cents per share in first-quarter 2021, down from $27 million or 23 cents per share in the year-ago quarter. Earnings per share missed the Zacks Consensus Estimate of 22 cents.
The bottom line in the reported quarter was hurt by lower income from operations. The company saw modestly lower average TiO2 selling prices, lower production costs and higher sales volumes in the quarter.
Net sales rose roughly 10% year over year to $465 million, driven by higher sales volumes, partly offset by lower average TiO2 selling prices. The figure beat the Zacks Consensus Estimate of $458.6 million.
Volumes and Pricing
The company’s TiO2 sales volumes went up 3% year over year in the reported quarter due to higher demand in North American and Latin American markets that more than offset weakness in the European market. TiO2 production volumes were down 1% year over year in the quarter.
Average TiO2 selling prices were down 1% year over year in the quarter.
Financials
Kronos Worldwide ended the quarter with cash and cash equivalents of $373.6 million, up around 9% year over year. Long-term debt was $465.9 million, up roughly 7% year over year.
Net cash provided by operating activities was $56.7 million for the quarter.
Outlook
Kronos Worldwide expects global demand for consumer products to remain strong through 2021 despite the uncertainties related the coronavirus pandemic. The company also expects TiO2 selling prices to rise throughout 2021 on higher consumer demand.
The company expects its sales and income from operations for 2021 to be higher on a year-over-year basis, mainly due to higher TiO2 selling prices and sales volumes.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Kronos Worldwide has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Kronos Worldwide has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Kronos Worldwide (KRO) Down 5.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Kronos Worldwide (KRO - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Kronos Worldwide due for a breakout? 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 drivers.
Kronos Worldwide’s Q1 Earnings Miss Estimates, Sales Beat
Kronos Worldwide recorded profits of $19.6 million or 17 cents per share in first-quarter 2021, down from $27 million or 23 cents per share in the year-ago quarter. Earnings per share missed the Zacks Consensus Estimate of 22 cents.
The bottom line in the reported quarter was hurt by lower income from operations. The company saw modestly lower average TiO2 selling prices, lower production costs and higher sales volumes in the quarter.
Net sales rose roughly 10% year over year to $465 million, driven by higher sales volumes, partly offset by lower average TiO2 selling prices. The figure beat the Zacks Consensus Estimate of $458.6 million.
Volumes and Pricing
The company’s TiO2 sales volumes went up 3% year over year in the reported quarter due to higher demand in North American and Latin American markets that more than offset weakness in the European market. TiO2 production volumes were down 1% year over year in the quarter.
Average TiO2 selling prices were down 1% year over year in the quarter.
Financials
Kronos Worldwide ended the quarter with cash and cash equivalents of $373.6 million, up around 9% year over year. Long-term debt was $465.9 million, up roughly 7% year over year.
Net cash provided by operating activities was $56.7 million for the quarter.
Outlook
Kronos Worldwide expects global demand for consumer products to remain strong through 2021 despite the uncertainties related the coronavirus pandemic. The company also expects TiO2 selling prices to rise throughout 2021 on higher consumer demand.
The company expects its sales and income from operations for 2021 to be higher on a year-over-year basis, mainly due to higher TiO2 selling prices and sales volumes.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Kronos Worldwide has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Kronos Worldwide has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.