The Chemours Company (CC - Free Report) logged a profit of $24 million or 15 cents per share in the second quarter of 2020, down from a profit of $96 million or 57 cents per share a year ago.
Adjusted earnings were 18 cents per share for the quarter, which surpassed the Zacks Consensus Estimate of 9 cents.
Total revenues fell around 22% year over year to $1,093 million. The company saw lower volumes across all segments in the quarter. However, revenues beat the Zacks Consensus Estimate of $1,077.5 million.
Segment Highlights
Revenues in the Fluoroproducts segment fell roughly 26% year over year to $523 million in the reported quarter. The decline was caused by the impacts of the coronavirus outbreak on global automotive original equipment manufacturers and industrial end-markets.
Revenues in the Chemical Solutions unit were $82 million, down 37% year over year. The company saw lower volumes in the quarter mainly due to coronavirus-related mine closures. Average prices also fell due to regional customer mix.
Revenues in the Titanium Technologies division were $488 million, down around 14% from the prior-year quarter. The decline was attributable to lower volumes resulting from weaker demand, mainly in Europe, Latin America and Asia. Average selling prices also fell on a year-over-year basis.
Financials
Chemours ended the quarter with cash and cash equivalents of $1,031 million, up roughly 64% year over year. Long-term debt was $4,327 million, up around 3% year over year.
Cash provided by operating activities was $111 million in the quarter while free cash flow was $50 million.
Outlook
Chemours noted that although its outlook for the second half is improving, it remains uncertain. The company remains focused on executing its short-term response plan and long-term strategy amid the uncertainties. The company aims to cut costs by $160 million and capital expenditure by roughly $125 million in 2020.
Price Performance
Chemours’ shares are down 0.9% in the past year compared with a 3.5% decline recorded by its industry.
Zacks Rank & Key Picks
Chemours currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Royal Gold, Inc. (RGLD - Free Report) , Equinox Gold Corp. (EQX - Free Report) and Kinross Gold Corporation (KGC - Free Report) .
Royal Gold has a projected earnings growth rate of 62.1% for the current year. The company’s shares have gained around 19% in a year. It currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Equinox Gold has a projected earnings growth rate of 255.2% for the current year. The company’s shares have rallied roughly 94% in a year. It currently carries a Zacks Rank #2 (Buy).
Kinross Gold has an expected earnings growth rate of 85.3% for the current year. The company’s shares have shot up around 116% in the past year. It presently carries a Zacks Rank #2.
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The Chemours Company (CC - Free Report) logged a profit of $24 million or 15 cents per share in the second quarter of 2020, down from a profit of $96 million or 57 cents per share a year ago.
Adjusted earnings were 18 cents per share for the quarter, which surpassed the Zacks Consensus Estimate of 9 cents.
Total revenues fell around 22% year over year to $1,093 million. The company saw lower volumes across all segments in the quarter. However, revenues beat the Zacks Consensus Estimate of $1,077.5 million.
Segment Highlights
Revenues in the Fluoroproducts segment fell roughly 26% year over year to $523 million in the reported quarter. The decline was caused by the impacts of the coronavirus outbreak on global automotive original equipment manufacturers and industrial end-markets.
Revenues in the Chemical Solutions unit were $82 million, down 37% year over year. The company saw lower volumes in the quarter mainly due to coronavirus-related mine closures. Average prices also fell due to regional customer mix.
Revenues in the Titanium Technologies division were $488 million, down around 14% from the prior-year quarter. The decline was attributable to lower volumes resulting from weaker demand, mainly in Europe, Latin America and Asia. Average selling prices also fell on a year-over-year basis.
Financials
Chemours ended the quarter with cash and cash equivalents of $1,031 million, up roughly 64% year over year. Long-term debt was $4,327 million, up around 3% year over year.
Cash provided by operating activities was $111 million in the quarter while free cash flow was $50 million.
Outlook
Chemours noted that although its outlook for the second half is improving, it remains uncertain. The company remains focused on executing its short-term response plan and long-term strategy amid the uncertainties. The company aims to cut costs by $160 million and capital expenditure by roughly $125 million in 2020.
Price Performance
Chemours’ shares are down 0.9% in the past year compared with a 3.5% decline recorded by its industry.
Zacks Rank & Key Picks
Chemours currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Royal Gold, Inc. (RGLD - Free Report) , Equinox Gold Corp. (EQX - Free Report) and Kinross Gold Corporation (KGC - Free Report) .
Royal Gold has a projected earnings growth rate of 62.1% for the current year. The company’s shares have gained around 19% in a year. It currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Equinox Gold has a projected earnings growth rate of 255.2% for the current year. The company’s shares have rallied roughly 94% in a year. It currently carries a Zacks Rank #2 (Buy).
Kinross Gold has an expected earnings growth rate of 85.3% for the current year. The company’s shares have shot up around 116% in the past year. It presently carries a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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