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Chemours (CC) to Report Q3 Earnings: What's in Store?
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The Chemours Company (CC - Free Report) is set to release third-quarter 2021 results after the bell on Nov 4. It is likely to have gained from higher customer adoption of Opteon platform, favorable prices and efforts to reduce costs. However, a weaker automotive production is likely to have affected its performance. The company is expected to have faced some headwinds from raw material cost inflation in the quarter.
The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 38.9%, on average. The company delivered an earnings surprise of 34.8% in the last reported quarter.
Chemours’ shares have surged 31.9% in the past year compared with a 22.5% rise of the industry.
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 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.
Earnings ESP: Earnings ESP for Chemours is +1.26%. The Zacks Consensus Estimate for third-quarter earnings is currently pegged at 99 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for Chemours’ third-quarter revenues is currently pegged at $1,638 million, which indicates an increase of about 32.8% on a year-over-year basis.
The Zacks Consensus Estimate for revenues in the Chemical Solutions unit is pegged at $92 million, which calls for a roughly 5% increase from the prior-year quarter’s levels.
The Zacks Consensus Estimate for revenues in the Titanium Technologies division is pegged at $852 million, which suggests an increase of 39.2% year over year.
Some Factors at Play
Chemours is likely to have benefited from cost-cutting measures in the third quarter. It has undertaken various measures to cut costs like reducing overhead, discretionary spend and capital expenditures. These measures are likely to have helped the company generate strong cash flows and margins in the quarter to be reported. Chemours is likely to have benefited from favorable prices in certain products.
The company is likely to have gained from the increasing adoption of the Opteon platform in the quarter. It is witnessing higher demand for Opteon in mobile and stationary applications.
Demand strength in electronics, communications, industrial and transportation markets are expected to have contributed to the company’s performance. Strong demand in all regions and end markets might have had a positive impact on volumes in the Titanium Technologies unit.
Chemours is likely to have faced headwinds from weaker automotive production due to the global semiconductor shortage resulting from the pandemic in the third quarter. Subdued auto build rates might have affected volumes in the quarter.
The company has also been facing headwinds from global logistics and supply chain issues. It is being challenged by raw material cost inflation due to supply constraints. Some impact from these headwinds is likely to have persisted in the to-be-reported quarter.
Here are some other companies in the basic materials space you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Olympic Steel, Inc. (ZEUS - Free Report) , scheduled to release earnings on Nov 4, has an Earnings ESP of +7.08% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada Corporation (FNV - Free Report) , scheduled to release earnings on Nov 3, has an Earnings ESP of +0.38% and carries a Zacks Rank #3.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 3, has an Earnings ESP of +8.73% and carries a Zacks Rank #3.
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Chemours (CC) to Report Q3 Earnings: What's in Store?
The Chemours Company (CC - Free Report) is set to release third-quarter 2021 results after the bell on Nov 4. It is likely to have gained from higher customer adoption of Opteon platform, favorable prices and efforts to reduce costs. However, a weaker automotive production is likely to have affected its performance. The company is expected to have faced some headwinds from raw material cost inflation in the quarter.
The company beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 38.9%, on average. The company delivered an earnings surprise of 34.8% in the last reported quarter.
Chemours’ shares have surged 31.9% in the past year compared with a 22.5% rise of the industry.
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts 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.
Earnings ESP: Earnings ESP for Chemours is +1.26%. The Zacks Consensus Estimate for third-quarter earnings is currently pegged at 99 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.
What Do Estimates Say?
The Zacks Consensus Estimate for Chemours’ third-quarter revenues is currently pegged at $1,638 million, which indicates an increase of about 32.8% on a year-over-year basis.
The Zacks Consensus Estimate for revenues in the Chemical Solutions unit is pegged at $92 million, which calls for a roughly 5% increase from the prior-year quarter’s levels.
The Zacks Consensus Estimate for revenues in the Titanium Technologies division is pegged at $852 million, which suggests an increase of 39.2% year over year.
Some Factors at Play
Chemours is likely to have benefited from cost-cutting measures in the third quarter. It has undertaken various measures to cut costs like reducing overhead, discretionary spend and capital expenditures. These measures are likely to have helped the company generate strong cash flows and margins in the quarter to be reported. Chemours is likely to have benefited from favorable prices in certain products.
The company is likely to have gained from the increasing adoption of the Opteon platform in the quarter. It is witnessing higher demand for Opteon in mobile and stationary applications.
Demand strength in electronics, communications, industrial and transportation markets are expected to have contributed to the company’s performance. Strong demand in all regions and end markets might have had a positive impact on volumes in the Titanium Technologies unit.
Chemours is likely to have faced headwinds from weaker automotive production due to the global semiconductor shortage resulting from the pandemic in the third quarter. Subdued auto build rates might have affected volumes in the quarter.
The company has also been facing headwinds from global logistics and supply chain issues. It is being challenged by raw material cost inflation due to supply constraints. Some impact from these headwinds is likely to have persisted in the to-be-reported quarter.
The Chemours Company Price and EPS Surprise
The Chemours Company price-eps-surprise | The Chemours Company Quote
Other Stocks That Warrant a Look
Here are some other companies in the basic materials space you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Olympic Steel, Inc. (ZEUS - Free Report) , scheduled to release earnings on Nov 4, has an Earnings ESP of +7.08% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada Corporation (FNV - Free Report) , scheduled to release earnings on Nov 3, has an Earnings ESP of +0.38% and carries a Zacks Rank #3.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 3, has an Earnings ESP of +8.73% and carries a Zacks Rank #3.