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Kronos Worldwide (KRO) Up 4.4% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Kronos Worldwide (KRO - Free Report) . Shares have added about 4.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kronos Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Kronos Worldwide 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 TiO2 selling prices.
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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -20% due to these changes.
VGM Scores
Currently, Kronos Worldwide has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Kronos Worldwide has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Kronos Worldwide (KRO) Up 4.4% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Kronos Worldwide (KRO - Free Report) . Shares have added about 4.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kronos Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Kronos Worldwide’s Q3 Earnings & Sales Surpass Estimates
Kronos Worldwide 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 TiO2 selling prices.
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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -20% due to these changes.
VGM Scores
Currently, Kronos Worldwide has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Kronos Worldwide has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.