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Chemours (CC) to Post Q1 Earnings: What's in the Cards?
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The Chemours Company (CC - Free Report) is set to release first-quarter 2022 results after the bell on May 2. It is likely to have gained from higher customer adoption of the Opteon platform, favorable prices and efforts to reduce costs. However, a weaker automotive production is likely to have affected its quarterly performance. The company is expected to have faced some headwinds from raw material cost inflation and ore constraints in the quarter.
The company beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 15.2%, on average. The company posted a negative earnings surprise of 6.9% in the last reported quarter.
Chemours’ shares have increased 3% in the past year against a 4.6% decline 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 +3.83%. The Zacks Consensus Estimate for first-quarter earnings is currently pegged at 92 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 #3.
What Do Estimates Say?
The Zacks Consensus Estimate for Chemours’ first-quarter revenues is currently pegged at $1,543 million, which indicates an increase of about 7.5% on a year-over-year basis.
The Zacks Consensus Estimate for revenues in the Chemical Solutions unit is pegged at $35 million, calling for a roughly 54% decline year over year.
The Zacks Consensus Estimate for revenues in the Titanium Technologies division is pegged at $832 million, suggesting a rise of 15.1% year over year.
Some Factors at Play
Chemours is likely to have benefited from cost-management actions in the first quarter. It has undertaken various measures to cut costs like reducing overhead and discretionary spending. The company’s cost, productivity and operational improvement actions across its businesses are likely to have supported margins. These measures are likely to have helped the company generate strong cash flows and margins in the quarter to be reported. The company’s margins are also expected to have been driven by implemented price raises for 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.
Chemours is likely to have faced headwinds from weaker automotive production due to the global semiconductor shortage in the first quarter. Subdued auto build rates might have affected volumes in the quarter.
The company has 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 company’s volumes are also likely to have been impacted due to ore constraints.
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
The consensus estimate for Huntsman’s first-quarter earnings has been revised 4.2% upward over the past 60 days. The Zacks Consensus Estimate for HUN’s earnings for the quarter stands at $1.
Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.55% and sports a Zacks Rank #1.
The consensus estimate for Nutrien’s first-quarter earnings has been revised 1.9% upward over the past 60 days. The Zacks Consensus Estimate for NTR’s earnings for the quarter stands at $2.59.
The Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.89% and sports a Zacks Rank #1.
The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward in the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.
Image: Bigstock
Chemours (CC) to Post Q1 Earnings: What's in the Cards?
The Chemours Company (CC - Free Report) is set to release first-quarter 2022 results after the bell on May 2. It is likely to have gained from higher customer adoption of the Opteon platform, favorable prices and efforts to reduce costs. However, a weaker automotive production is likely to have affected its quarterly performance. The company is expected to have faced some headwinds from raw material cost inflation and ore constraints in the quarter.
The company beat the Zacks Consensus Estimate for earnings in three of the last four quarters, while missing once. It has a trailing four-quarter earnings surprise of roughly 15.2%, on average. The company posted a negative earnings surprise of 6.9% in the last reported quarter.
Chemours’ shares have increased 3% in the past year against a 4.6% decline 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 +3.83%. The Zacks Consensus Estimate for first-quarter earnings is currently pegged at 92 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 #3.
What Do Estimates Say?
The Zacks Consensus Estimate for Chemours’ first-quarter revenues is currently pegged at $1,543 million, which indicates an increase of about 7.5% on a year-over-year basis.
The Zacks Consensus Estimate for revenues in the Chemical Solutions unit is pegged at $35 million, calling for a roughly 54% decline year over year.
The Zacks Consensus Estimate for revenues in the Titanium Technologies division is pegged at $832 million, suggesting a rise of 15.1% year over year.
Some Factors at Play
Chemours is likely to have benefited from cost-management actions in the first quarter. It has undertaken various measures to cut costs like reducing overhead and discretionary spending. The company’s cost, productivity and operational improvement actions across its businesses are likely to have supported margins. These measures are likely to have helped the company generate strong cash flows and margins in the quarter to be reported. The company’s margins are also expected to have been driven by implemented price raises for 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.
Chemours is likely to have faced headwinds from weaker automotive production due to the global semiconductor shortage in the first quarter. Subdued auto build rates might have affected volumes in the quarter.
The company has 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 company’s volumes are also likely to have been impacted due to ore constraints.
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 companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Huntsman Corporation (HUN - Free Report) , slated to release earnings on Apr 28, has an Earnings ESP of +1.88% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Huntsman’s first-quarter earnings has been revised 4.2% upward over the past 60 days. The Zacks Consensus Estimate for HUN’s earnings for the quarter stands at $1.
Nutrien Ltd. (NTR - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.55% and sports a Zacks Rank #1.
The consensus estimate for Nutrien’s first-quarter earnings has been revised 1.9% upward over the past 60 days. The Zacks Consensus Estimate for NTR’s earnings for the quarter stands at $2.59.
The Mosaic Company (MOS - Free Report) , scheduled to release earnings on May 2, has an Earnings ESP of +0.89% and sports a Zacks Rank #1.
The Zacks Consensus Estimate for Mosaic’s first-quarter earnings has been revised 14.6% upward in the past 60 days. The Zacks Consensus Estimate for MOS’s earnings for the quarter is currently pegged at $2.44.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.