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Kronos Worldwide (KRO) Q1 Earnings Miss Estimates, Sales Beat
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Kronos Worldwide, Inc. (KRO - Free Report) recorded profits of $19.6 million or 17 cents per share in first-quarter 2021, down from $27 million or 23 cents per share in the year-ago quarter. Earnings per share missed the Zacks Consensus Estimate of 22 cents.
The bottom line in the reported quarter was hurt by lower income from operations. The company saw modestly lower average titanium dioxide (TiO2) selling prices, lower production costs and higher sales volumes in the quarter.
Net sales rose roughly 10% year over year to $465 million, driven by higher sales volumes, partly offset by lower average TiO2 selling prices. The figure beat the Zacks Consensus Estimate of $458.6 million.
Kronos Worldwide Inc Price, Consensus and EPS Surprise
The company’s TiO2 sales volumes went up 3% year over year in the reported quarter due to higher demand in North American and Latin American markets that more than offset weakness in the European market. TiO2 production volumes were down 1% year over year in the quarter.
Average TiO2 selling prices were down 1% year over year in the quarter.
Financials
Kronos Worldwide ended the quarter with cash and cash equivalents of $373.6 million, up around 9% year over year. Long-term debt was $465.9 million, up roughly 7% year over year.
Net cash provided by operating activities was $56.7 million for the quarter.
Outlook
Kronos Worldwide expects global demand for consumer products to remain strong through 2021 despite the uncertainties related the coronavirus pandemic. The company also expects TiO2 selling prices to rise throughout 2021 on higher consumer demand.
The company expects its sales and income from operations for 2021 to be higher on a year-over-year basis, mainly due to higher TiO2 selling prices and sales volumes.
Price Performance
Shares of Kronos Worldwide have rallied 102.5% over a year compared with 78.4% rise of the industry.
Zacks Rank & Key Picks
Kronos Worldwide currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 134% 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.
Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 110% in a year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 226% in the past year. It currently carries a Zacks Rank #1.
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Kronos Worldwide (KRO) Q1 Earnings Miss Estimates, Sales Beat
Kronos Worldwide, Inc. (KRO - Free Report) recorded profits of $19.6 million or 17 cents per share in first-quarter 2021, down from $27 million or 23 cents per share in the year-ago quarter. Earnings per share missed the Zacks Consensus Estimate of 22 cents.
The bottom line in the reported quarter was hurt by lower income from operations. The company saw modestly lower average titanium dioxide (TiO2) selling prices, lower production costs and higher sales volumes in the quarter.
Net sales rose roughly 10% year over year to $465 million, driven by higher sales volumes, partly offset by lower average TiO2 selling prices. The figure beat the Zacks Consensus Estimate of $458.6 million.
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 went up 3% year over year in the reported quarter due to higher demand in North American and Latin American markets that more than offset weakness in the European market. TiO2 production volumes were down 1% year over year in the quarter.
Average TiO2 selling prices were down 1% year over year in the quarter.
Financials
Kronos Worldwide ended the quarter with cash and cash equivalents of $373.6 million, up around 9% year over year. Long-term debt was $465.9 million, up roughly 7% year over year.
Net cash provided by operating activities was $56.7 million for the quarter.
Outlook
Kronos Worldwide expects global demand for consumer products to remain strong through 2021 despite the uncertainties related the coronavirus pandemic. The company also expects TiO2 selling prices to rise throughout 2021 on higher consumer demand.
The company expects its sales and income from operations for 2021 to be higher on a year-over-year basis, mainly due to higher TiO2 selling prices and sales volumes.
Price Performance
Shares of Kronos Worldwide have rallied 102.5% over a year compared with 78.4% rise of the industry.
Zacks Rank & Key Picks
Kronos Worldwide currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Nucor has a projected earnings growth rate of 228.4% for the current year. The company’s shares have rallied around 134% 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.
Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have shot up around 110% in a year. It currently sports a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have surged around 226% in the past year. It currently carries a Zacks Rank #1.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>