Kronos Worldwide, Inc. (KRO Quick QuoteKRO - Free Report) raised its quarterly dividend by 2 cents to 17 cents per share. The dividend will be payable on Mar 15, 2018 to stockholders of record as of Mar 6, 2018.

 

Kronos Worldwide ended third-quarter 2017 with cash and cash equivalents of $316.7 million, surging around 243.9% year over year. Cash flows from operating activities were $218.3 million for the first nine months of 2017, a more than three-fold rise from $68.7 million for the same period a year ago.

 

The company expects production volumes to be higher for full-year 2017 on a year-over-year basis as production rates for 2017 will be favorably impacted by the implementation of some productivity-enhancing improvement projects at certain facilities. Also, the company anticipates sales volume to be higher in 2017 than in 2016.

 

The company also envisions income from operations for 2017 will be higher on a year-over-year basis, mainly due to an expected increase in average selling prices and anticipated higher production and sales volumes.

 

The company witnessed a significant rise in profits in the third quarter on the back of higher average selling prices and increased sales and production volumes. It also saw strong sales volumes during the first nine months of 2017.

 

Kronos Worldwide is witnessing strong demand for titanium dioxide products across most segments. The company is also gaining from higher pricing. It witnessed average selling prices increase 21% in the first nine months of 2017.

 

Kronos Worldwide’s shares have shot up 68.8% over a year. The company has also significantly outperformed its industry’s gain of roughly 19.7% over the same time frame.  

 

 

 

Annual estimates for Kronos Worldwide have also moved north over the past three months, reflecting analysts’ confidence on the stock. The Zacks Consensus Estimate for 2017 earnings of $1.63 reflects an expected year-over-year surge of 425.8%. Moreover, earnings are expected to register 41.1% growth in 2018.

Kronos Worldwide Inc Price and Consensus

 

Some better-ranked companies in the basic materials space are Olympic Steel, Inc. (ZEUS Quick QuoteZEUS - Free Report) , Methanex Corporation (MEOH Quick QuoteMEOH - Free Report) and LyondellBasell Industries N.V. (LYB Quick QuoteLYB - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Olympic Steel has an expected long-term earnings growth rate of 7.5%. Its shares rallied 34% over the past six months. 

 

Methanex has an expected long-term earnings growth rate of 15%. Its shares have gained roughly 22% over the past six months.

 

LyondellBasell has an expected long-term earnings growth rate of 9%. Its shares have rallied around 23% over the past six months.