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Tronox (TROX) to Post Q2 Earnings: What's in the Cards?

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Tronox Holdings plc (TROX - Free Report) is scheduled to report second-quarter 2021 results after the closing bell on Jul 28. The company’s results are expected to reflect higher volumes and prices for titanium dioxide (TiO2) and zircon.

The company has a trailing four-quarter negative earnings surprise of around 4%, on average. It posted an earnings surprise of 59.3% in the last reported quarter.

The stock has rallied 146.5% in the past year compared with the industry’s 30.8% rise.

 

Zacks Investment Research
Image Source: Zacks Investment Research



Let’s see how things are shaping up for this announcement.

Zacks Model

Our proven model predicts an earnings beat for Tronox this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.

Earnings ESP: Earnings ESP for Tronox is +0.67%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at 50 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Tronox currently carries a Zacks Rank #3.

What Do the Estimates Say?

The Zacks Consensus Estimate for second-quarter consolidated revenues for Tronox is currently pegged at $921 million, which calls for a rise of 59.4% year over year.

Some Factors at Play

The company is likely to have benefited from higher sales volumes of TiO2 and zircon in the second quarter. Global demand strength on the back of ongoing economic recovery is expected to have supported TiO2 volumes. Healthy demand in China and the global economic recovery is also like to have aided zircon volumes. Higher volumes are expected to have driven its top line in the quarter to be reported.

Higher TiO2 and zircon prices are also expected to have aided its performance. The company’s regional pricing initiatives are likely to have supported prices in the quarter to be reported.

However, the company is likely to have faced headwinds from the maintenance shutdown of its synthetic rutile production facility, higher raw material and logistics costs and unfavorable currency swings in the second quarter.

 

Tronox Holdings PLC Price and EPS Surprise

 

Tronox Holdings PLC Price and EPS Surprise

Tronox Holdings PLC price-eps-surprise | Tronox Holdings PLC Quote

 

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:

LyondellBasell Industries N.V. (LYB - Free Report) , scheduled to release earnings on Jul 30, has an Earnings ESP of +9.93% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Westlake Chemical Corporation (WLK - Free Report) scheduled to release earnings on Aug 3, has an Earnings ESP of +5.97% and carries a Zacks Rank #1.

Eastman Chemical Company (EMN - Free Report) , scheduled to release earnings on Aug 2, has an Earnings ESP of +2.11% and carries a Zacks Rank #3.