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Tronox (TROX) to Post Q1 Earnings: What's in the Cards?

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Tronox Holdings plc (TROX - Free Report) is scheduled to report first-quarter 2022 results after the closing bell on Apr 27. The company’s results are expected to reflect higher volumes and prices for titanium dioxide (TiO2).

The company has a trailing four-quarter earnings surprise of around 19.3%, on average. It posted a negative earnings surprise of 11.7% in the last reported quarter.

The stock has declined 10% in the past year compared with the industry’s 3.4% decline.

 

Zacks Investment Research
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Let’s see how things are shaping up for this announcement.

What Do the Estimates Say?

The Zacks Consensus Estimate for first-quarter consolidated revenues for Tronox is currently pegged at $943 million, which calls for a rise of 5.8% year over year.

Some Factors at Play

The company is likely to have benefited from higher sales volumes of TiO2 in the first quarter. Strong customer demand on the back of the ongoing economic recovery is expected to have supported TiO2 volumes. Higher volumes are expected to have driven its top line in the quarter to be reported.

Higher TiO2 and zircon prices are also expected to have aided its performance. The company’s regional pricing initiatives are likely to have supported prices in the quarter to be reported.

However, the company is likely to have faced headwinds from higher raw material costs and supply chain disruptions in the March quarter. It is likely to have witnessed increased commodity prices in the quarter. Higher costs are expected to have weighed on its margins. The company is also likely to have witnessed some volume pressure in zircon in the first quarter.

 

Tronox Holdings PLC Price and EPS Surprise

 

Tronox Holdings PLC Price and EPS Surprise

Tronox Holdings PLC price-eps-surprise | Tronox Holdings PLC Quote

 

Zacks Model

Our proven model does not conclusively predict an earnings beat for Tronox this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Tronox is -2.02%. The Zacks Consensus Estimate for earnings for the first quarter is currently pegged at 62 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Tronox 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 Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.89% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward over the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.

Westlake Corporation (WLK - Free Report) , slated to release earnings on May 3, has an Earnings ESP of +17.03% and carries a Zacks Rank #1.

The Zacks Consensus Estimate for Westlake's first-quarter earnings has been revised 22.1% upward over the past 60 days. The consensus estimate for WLK’s earnings for the quarter is currently pegged at $4.53.

Methanex Corporation (MEOH - Free Report) , scheduled to release earnings on Apr 27, has an Earnings ESP of +6.70% and carries a Zacks Rank #3.

The Zacks Consensus Estimate for Methanex's first-quarter earnings has been revised 4.5% upward over the past 60 days. The consensus estimate for MEOH’s earnings for the quarter is currently pegged at $2.05.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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