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Chemours (CC) to Report Q2 Earnings: What's in the Cards?
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The Chemours Company (CC - Free Report) is set to release second-quarter 2021 results after the bell on Jul 29. Chemours is likely to have gained from increasing customer adoption of Opteon platform, favorable prices and its efforts to reduce costs. However, weaker automotive production is likely to have affected its performance. Also, the company is likely to have faced some headwinds 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 55.2%, on average. The company delivered an earnings surprise of 4.4% in the last reported quarter.
Chemours’ shares have surged 73.4% in the past year compared with 29.3% rise of the industry.
Image Source: Zacks Investment Research
What Do Estimates Say?
The Zacks Consensus Estimate for Chemours’ second-quarter revenues is currently pegged at $1,514 million, which indicates an increase of roughly 38.5% on a year-over-year basis.
The Zacks Consensus Estimate for revenues of the Chemical Solutions unit is pegged at $86 million, which implies a roughly 5% increase from the prior-year quarter’s levels.
The Zacks Consensus Estimate for the Titanium Technologies division is pegged at $769 million, which suggests an increase of 57.6% year over year.
Some Factors at Play
Chemours is likely to have benefited from favorable prices in certain products. Cost-cutting measures are also 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 helped the company generate strong cash flows.
The company is also likely to have gained from increasing adoption of the Opteon platform in the quarter. It is witnessing higher demand for Opteon in mobile applications.
Moreover, Chemours is likely to have benefited from growing applications of fluoropolymers, especially in automotive, electronics and energy end-markets.
However, the company is likely to have faced headwinds from weaker automotive production due to the global semiconductor shortage as a result of the pandemic in the second quarter. Subdued auto build rates may have affected volumes in the quarter.
The company has been facing headwinds in the Chemical Solutions segment that resulted in supply chain disruptions, operational challenges and higher costs associated with the impact of the winter storm Uri and the deep freeze across Texas in the first quarter. Some lingering impact of these headwinds is likely to have continued in the to-be-reported quarter, affecting sales in the segment.
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 second-quarter earnings is currently pegged at 89 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this time around.
LyondellBasell Industries N.V. (LYB - Free Report) , scheduled to release earnings on Jul 30, has an Earnings ESP of +6.99% and sports a Zacks Rank #1.
Westlake Chemical Corporation (WLK - Free Report) scheduled to release earnings on Aug 3, has an Earnings ESP of +1.50% and carries a Zacks Rank #2.
Eastman Chemical Company (EMN - Free Report) , scheduled to release earnings on Aug 2, has an Earnings ESP of +0.90% and carries a Zacks Rank #3.
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Chemours (CC) to Report Q2 Earnings: What's in the Cards?
The Chemours Company (CC - Free Report) is set to release second-quarter 2021 results after the bell on Jul 29. Chemours is likely to have gained from increasing customer adoption of Opteon platform, favorable prices and its efforts to reduce costs. However, weaker automotive production is likely to have affected its performance. Also, the company is likely to have faced some headwinds 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 55.2%, on average. The company delivered an earnings surprise of 4.4% in the last reported quarter.
Chemours’ shares have surged 73.4% in the past year compared with 29.3% rise of the industry.
Image Source: Zacks Investment Research
What Do Estimates Say?
The Zacks Consensus Estimate for Chemours’ second-quarter revenues is currently pegged at $1,514 million, which indicates an increase of roughly 38.5% on a year-over-year basis.
The Zacks Consensus Estimate for revenues of the Chemical Solutions unit is pegged at $86 million, which implies a roughly 5% increase from the prior-year quarter’s levels.
The Zacks Consensus Estimate for the Titanium Technologies division is pegged at $769 million, which suggests an increase of 57.6% year over year.
Some Factors at Play
Chemours is likely to have benefited from favorable prices in certain products. Cost-cutting measures are also 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 helped the company generate strong cash flows.
The company is also likely to have gained from increasing adoption of the Opteon platform in the quarter. It is witnessing higher demand for Opteon in mobile applications.
Moreover, Chemours is likely to have benefited from growing applications of fluoropolymers, especially in automotive, electronics and energy end-markets.
However, the company is likely to have faced headwinds from weaker automotive production due to the global semiconductor shortage as a result of the pandemic in the second quarter. Subdued auto build rates may have affected volumes in the quarter.
The company has been facing headwinds in the Chemical Solutions segment that resulted in supply chain disruptions, operational challenges and higher costs associated with the impact of the winter storm Uri and the deep freeze across Texas in the first quarter. Some lingering impact of these headwinds is likely to have continued in the to-be-reported quarter, affecting sales in the segment.
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 second-quarter earnings is currently pegged at 89 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Chemours Company Price and EPS Surprise
The Chemours Company price-eps-surprise | The Chemours Company Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this time around.
LyondellBasell Industries N.V. (LYB - Free Report) , scheduled to release earnings on Jul 30, has an Earnings ESP of +6.99% and sports a Zacks Rank #1.
Westlake Chemical Corporation (WLK - Free Report) scheduled to release earnings on Aug 3, has an Earnings ESP of +1.50% and carries a Zacks Rank #2.
Eastman Chemical Company (EMN - Free Report) , scheduled to release earnings on Aug 2, has an Earnings ESP of +0.90% and carries a Zacks Rank #3.