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Chemours (CC) Earnings and Revenues Surpass Estimates in Q2
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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.
The Chemours Company Price, Consensus and EPS Surprise
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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Chemours (CC) Earnings and Revenues Surpass Estimates in Q2
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.
The Chemours Company Price, Consensus and EPS Surprise
The Chemours Company price-consensus-eps-surprise-chart | The Chemours Company Quote
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.
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