Tronox Holdings plc (TROX - Free Report) recorded profits (attributable to the company) of $32 million or 22 cents per share in first-quarter 2020 against a loss of $34 million or 27 cents per share a year ago.
Barring one-time items, adjusted earnings per share for the reported quarter were 29 cents, which surpassed the Zacks Consensus Estimate of 23 cents.
Revenues surged around 85% year over year to $722 million in the reported quarter, matching the Zacks Consensus Estimate. The upside can be attributed to higher titanium dioxide (TiO2) sales.
Product Revenues
TiO2 sales shot up 109% year over year to $580 million. Sales included contributions from the acquired operations of Cristal.
Zircon sales rose 2% to $65 million in the reported quarter. Sales include revenues from the Cristal operations.
Feedstock and other products’ sales climbed 57% to $77 million, boosted by Cristal operations.
Financials
The company ended the quarter with cash and cash equivalents of $420 million, down around 61% year over year. Long-term debt was $2,954 million, down roughly 8% year over year. The company has no near-term maturities on its term loan or notes until 2024.
Outlook
The company currently expects TiO2 volumes to decline in the high teens to low 20s percent range on a sequential comparison basis in second-quarter 2020. Zircon volumes are forecast to remain largely in line with first-quarter 2020.
Tronox also reduced its capital expenditures for full-year 2020 to $225 million from $275 million as well as working capital to $40-$50 million from $75-$100 million.
Price Performance
Shares of Tronox have lost 31.9% over a year, compared with the industry’s 24.4% decline.
Zacks Rank & Key Picks
Tronox currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space are The Scotts Miracle-Gro Company (SMG - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Newmont Corporation (NEM - Free Report) .
Scotts Miracle-Gro has an expected earnings growth rate of 17.7% for the current fiscal year. The company’s shares have gained roughly 60% in the past year. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Franco-Nevada has a projected earnings growth rate of 22% for the current year. It currently carries a Zacks Rank #2. The company’s shares have surged roughly 89% in a year.
Newmont has a projected earnings growth rate of 85.6% for the current year. The company’s shares have rallied around 109% in a year. It currently has a Zacks Rank #2.
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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.
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Tronox Holdings plc (TROX - Free Report) recorded profits (attributable to the company) of $32 million or 22 cents per share in first-quarter 2020 against a loss of $34 million or 27 cents per share a year ago.
Barring one-time items, adjusted earnings per share for the reported quarter were 29 cents, which surpassed the Zacks Consensus Estimate of 23 cents.
Revenues surged around 85% year over year to $722 million in the reported quarter, matching the Zacks Consensus Estimate. The upside can be attributed to higher titanium dioxide (TiO2) sales.
Product Revenues
TiO2 sales shot up 109% year over year to $580 million. Sales included contributions from the acquired operations of Cristal.
Zircon sales rose 2% to $65 million in the reported quarter. Sales include revenues from the Cristal operations.
Feedstock and other products’ sales climbed 57% to $77 million, boosted by Cristal operations.
Financials
The company ended the quarter with cash and cash equivalents of $420 million, down around 61% year over year. Long-term debt was $2,954 million, down roughly 8% year over year. The company has no near-term maturities on its term loan or notes until 2024.
Outlook
The company currently expects TiO2 volumes to decline in the high teens to low 20s percent range on a sequential comparison basis in second-quarter 2020. Zircon volumes are forecast to remain largely in line with first-quarter 2020.
Tronox also reduced its capital expenditures for full-year 2020 to $225 million from $275 million as well as working capital to $40-$50 million from $75-$100 million.
Price Performance
Shares of Tronox have lost 31.9% over a year, compared with the industry’s 24.4% decline.
Zacks Rank & Key Picks
Tronox currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space are The Scotts Miracle-Gro Company (SMG - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Newmont Corporation (NEM - Free Report) .
Scotts Miracle-Gro has an expected earnings growth rate of 17.7% for the current fiscal year. The company’s shares have gained roughly 60% in the past year. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Franco-Nevada has a projected earnings growth rate of 22% for the current year. It currently carries a Zacks Rank #2. The company’s shares have surged roughly 89% in a year.
Newmont has a projected earnings growth rate of 85.6% for the current year. The company’s shares have rallied around 109% in a year. It currently has a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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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