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Kronos Worldwide (KRO) Q3 Earnings & Sales Surpass Estimates

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Kronos Worldwide, Inc. (KRO - Free Report) logged a profit of $8.1 million or 7 cents per share in third-quarter 2020, down from $17.9 million or 16 cents per share in the year-ago quarter. Earnings, however, beat the Zacks Consensus Estimate of 4 cents.

The bottom line in the reported quarter was impacted by lower sales volumes and lower average titanium dioxide (TiO2) selling prices, partly masked by reduced production costs.

Net sales fell roughly 5% year over year to $416.9 million, hurt by lower sales volumes and lower average TiO2 selling prices. However, the figure beat the Zacks Consensus Estimate of $373.3 million.

 

Kronos Worldwide Inc Price, Consensus and EPS Surprise

 

Kronos Worldwide Inc Price, Consensus and EPS Surprise

Kronos Worldwide Inc price-consensus-eps-surprise-chart | Kronos Worldwide Inc Quote

 

Volumes and Pricing

The company’s TiO2 sales volumes fell 6% year over year due to lower demand in European and export markets. TiO2 production volumes were down 11% year over year in the reported quarter.

Average TiO2 selling prices were down 4% year over year in the reported quarter.

Financials

Kronos Worldwide ended the quarter with cash and cash equivalents of $348.4 million, down around 10% year over year. Long-term debt was $465.9 million, up roughly 7% year over year.

Net cash provided by operating activities was $56.1 million for the nine months ended Sep 30, 2020.

Outlook

Kronos Worldwide said that the coronavirus pandemic impacted its operations through lower demand for the products, resulting in reduced sales and earnings for the third quarter. However, it saw improved sales volumes on a sequential comparison basis in the third quarter.

The company expects the U.S. and global gross domestic product to be considerably impacted for an indeterminate period. Factoring in the impacts of the pandemic on the world economy, it envisions its sales volumes and earnings to be lower than the year-ago period for the balance of 2020.

Price Performance

Shares of Kronos Worldwide are up 3.4% year to date compared with a 3.4% decline of the industry.

 

 

Zacks Rank & Key Picks

Kronos Worldwide currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth considering in the basic materials space include Agnico Eagle Mines Limited (AEM - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and B2Gold Corp. (BTG - Free Report) .

Agnico Eagle has a projected earnings growth rate of 103.1% for the current year. The company’s shares have gained around 42% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Barrick Gold has an expected earnings growth rate of 100% for the current year. The company’s shares have surged around 79% in the past year. It currently carries a Zacks Rank #2 (Buy).

B2Gold has a projected earnings growth rate of 250% for the current year. The company’s shares have shot up roughly 103% in a year. It currently carries a Zacks Rank #2.

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