We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chemours (CC) to Post Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
The Chemours Company (CC - Free Report) is set to release fourth-quarter 2020 results after the bell on Feb 11. The company’s Fluoroproducts unit is likely to have benefited from improved customer demand for refrigerants. Chemours is likely to have gained from increasing customer adoption of Opteon refrigerants. However, some demand weakness in fluoropolymer products is expected to have persisted in the quarter. Also, the company is likely to have faced some volume pressure in the Chemical Solutions unit in the quarter.
The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of roughly 54.1%, on average.
Chemours’ shares have surged 95.3% in the past year compared with 22.5% rise of the industry.
What do the Estimates Say?
The Zacks Consensus Estimate for Chemours’ fourth-quarter revenues is currently pegged at $1,251 million, which indicates an expected decline of roughly 7.5% on a year-over-year basis.
The Zacks Consensus Estimate for revenues in the Fluoroproducts segment is pegged at $539 million, indicating a decline of 12.2% year over year.
The Zacks Consensus Estimate for revenues in the Chemical Solutions unit is at $91 million, which calls for an expected 29.5% fall from the prior-year quarter’s levels.
The Zacks Consensus Estimate for the Titanium Technologies division is pegged at $628 million, which suggests an increase of 2.9% year over year.
Some Factors at Play
Chemours is likely to have benefited from recovery in demand across all markets and regions from the pandemic slowdown in the quarter to be reported. Cost-cutting measures are likely to have contributed to the company’s performance. It has taken various measures like reducing overhead, discretionary spend and capital expenditures. These measures are likely to have had helped the company generate strong cash flows.
The company is also likely to have gained from increasing adoption of the Opteon platform. It is witnessing higher demand for Opteon in mobile applications.
Chemours is likely to have benefited from improved demand for refrigerants, especially in the automotive sector on a rebound in automotive OEM production rates. Also, demand recovery of architectural coatings, laminates and plastics markets in its Titanium Technologies segment is expected to have helped the company in the said quarter.
However, lower demand in fluoropolymer products is expected to have hurt volumes in the fourth quarter. The company is also facing headwinds in the Chemical Solutions segment that saw lower prices and volumes in the third quarter due to mining operation shutdowns by customers in Latin America and demand softness in mining solutions in the wake of the pandemic. Some volume pressure is likely to have continued in the to-be-reported quarter.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Chemours this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Chemours is 0.00%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at 36 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Chemours carries a Zacks Rank #2 (Buy).
Orion Engineered Carbons S.A. (OEC - Free Report) , scheduled to release earnings on Feb 18, has an Earnings ESP of +22.33% and carries a Zacks Rank #2.
SSR Mining Inc. (SSRM - Free Report) , scheduled to release earnings on Feb 17, has an Earnings ESP of +2.57% and carries a Zacks Rank #3.
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 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Chemours (CC) to Post Q4 Earnings: What's in the Cards?
The Chemours Company (CC - Free Report) is set to release fourth-quarter 2020 results after the bell on Feb 11. The company’s Fluoroproducts unit is likely to have benefited from improved customer demand for refrigerants. Chemours is likely to have gained from increasing customer adoption of Opteon refrigerants. However, some demand weakness in fluoropolymer products is expected to have persisted in the quarter. Also, the company is likely to have faced some volume pressure in the Chemical Solutions unit in the quarter.
The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of roughly 54.1%, on average.
Chemours’ shares have surged 95.3% in the past year compared with 22.5% rise of the industry.
What do the Estimates Say?
The Zacks Consensus Estimate for Chemours’ fourth-quarter revenues is currently pegged at $1,251 million, which indicates an expected decline of roughly 7.5% on a year-over-year basis.
The Zacks Consensus Estimate for revenues in the Fluoroproducts segment is pegged at $539 million, indicating a decline of 12.2% year over year.
The Zacks Consensus Estimate for revenues in the Chemical Solutions unit is at $91 million, which calls for an expected 29.5% fall from the prior-year quarter’s levels.
The Zacks Consensus Estimate for the Titanium Technologies division is pegged at $628 million, which suggests an increase of 2.9% year over year.
Some Factors at Play
Chemours is likely to have benefited from recovery in demand across all markets and regions from the pandemic slowdown in the quarter to be reported. Cost-cutting measures are likely to have contributed to the company’s performance. It has taken various measures like reducing overhead, discretionary spend and capital expenditures. These measures are likely to have had helped the company generate strong cash flows.
The company is also likely to have gained from increasing adoption of the Opteon platform. It is witnessing higher demand for Opteon in mobile applications.
Chemours is likely to have benefited from improved demand for refrigerants, especially in the automotive sector on a rebound in automotive OEM production rates. Also, demand recovery of architectural coatings, laminates and plastics markets in its Titanium Technologies segment is expected to have helped the company in the said quarter.
However, lower demand in fluoropolymer products is expected to have hurt volumes in the fourth quarter. The company is also facing headwinds in the Chemical Solutions segment that saw lower prices and volumes in the third quarter due to mining operation shutdowns by customers in Latin America and demand softness in mining solutions in the wake of the pandemic. Some volume pressure is likely to have continued in the to-be-reported quarter.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Chemours this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Chemours is 0.00%. The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at 36 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Chemours carries a Zacks Rank #2 (Buy).
The Chemours Company Price and EPS Surprise
The Chemours Company price-eps-surprise | The Chemours Company Quote
Stocks to Consider
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Koppers Holdings Inc. (KOP - Free Report) , scheduled to release earnings on Feb 24, has an Earnings ESP of +23.20% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Orion Engineered Carbons S.A. (OEC - Free Report) , scheduled to release earnings on Feb 18, has an Earnings ESP of +22.33% and carries a Zacks Rank #2.
SSR Mining Inc. (SSRM - Free Report) , scheduled to release earnings on Feb 17, has an Earnings ESP of +2.57% and carries a Zacks Rank #3.
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 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>