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Chemours (CC) Earnings and Revenues Top Estimates in Q2
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The Chemours Company (CC - Free Report) posted a profit of $201 million or $1.26 per share in the second quarter of 2022, up from a profit of $66 million or 39 cents in the year-ago quarter.
Barring one-time items, earnings came in at $1.89 per share for the reported quarter, topping the Zacks Consensus Estimate of $1.42. Our estimate for the quarter was $1.43.
Net sales rose around 16% year over year to $1,915 million, beating the Zacks Consensus Estimate of $1,818.7 million. The figure also compares to our estimate of $1,821.1 million.
Prices contributed favorably to the top line growth in the quarter. The company, however, faced volume and currency headwinds in the reported quarter. Prices rose 23% while volumes fell 1%.
The Chemours Company Price, Consensus and EPS Surprise
The Titanium Technologies division logged revenues of $968 million in the quarter, up 13% year over year. This compares to the consensus estimate of $974.2 million and our estimate of $895.5 million. Volumes fell 8% year over year while prices increased 23%. Volumes were driven by ore supply challenges. Prices rose on the back of strong demand for Ti-Pure pigment.
Revenues in the Thermal & Specialized Solutions segment went up 52% year over year to $518 million in the reported quarter. This compares to the consensus estimate of $416.2 million and our estimate of $428.4 million. Volumes increased 15% year over year on continued adoption of Opteon refrigerants and other specialized solutions. Price contributed 39% to the division’s sales growth.
Revenues in the Advanced Performance Materials unit were $401 million, up roughly 11% year over year. This compares to the consensus estimate of $416.5 million and our estimate of $463.4 million. Price contributed 15% to the sales growth. Volumes fell 1% due to supply chain challenges and reduced demand in non-strategic end markets.
Chemours completed the sale of its Mining Solutions business to Draslovka in late 2021. The remaining Chemical Solutions business in the Other segment recorded sales of $28 million in the second quarter. This compares to the consensus estimate of $35.3 million and our estimate of $33.8 million.
Financials
Chemours ended the quarter with cash and cash equivalents of $1,248 million, up roughly 10% year over year. Long-term debt was $3,656 million, down around 8% year over year.
Cash provided by operating activities was $291 million for the reported quarter, up around 14% from the year-ago quarter.
The company repurchased $128 million of common stock during the quarter, resulting in total share repurchases of $272 million in the first half of 2022.
Outlook
Chemours now sees adjusted EBITDA at the top end of its guidance range of $1.475-$1.575 billion for 2022.
Free cash flow for 2022 is now forecast to be more than $600 million, up from more than $550 million it expected earlier.
Price Performance
Shares of Chemours have gained 6.2% in the past year, outperforming the industry’s decline of 8%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Chemours currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , ATI Inc. (ATI - Free Report) and Albemarle Corporation (ALB - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 33% over a year.
ATI, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 21% in a year.
Albemarle has a projected earnings growth rate of 241.8% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 18% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 15% in a year. The company flaunts a Zacks Rank #2 (Buy).
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Chemours (CC) Earnings and Revenues Top Estimates in Q2
The Chemours Company (CC - Free Report) posted a profit of $201 million or $1.26 per share in the second quarter of 2022, up from a profit of $66 million or 39 cents in the year-ago quarter.
Barring one-time items, earnings came in at $1.89 per share for the reported quarter, topping the Zacks Consensus Estimate of $1.42. Our estimate for the quarter was $1.43.
Net sales rose around 16% year over year to $1,915 million, beating the Zacks Consensus Estimate of $1,818.7 million. The figure also compares to our estimate of $1,821.1 million.
Prices contributed favorably to the top line growth in the quarter. The company, however, faced volume and currency headwinds in the reported quarter. Prices rose 23% while volumes fell 1%.
The Chemours Company Price, Consensus and EPS Surprise
The Chemours Company price-consensus-eps-surprise-chart | The Chemours Company Quote
Segment Highlights
The Titanium Technologies division logged revenues of $968 million in the quarter, up 13% year over year. This compares to the consensus estimate of $974.2 million and our estimate of $895.5 million. Volumes fell 8% year over year while prices increased 23%. Volumes were driven by ore supply challenges. Prices rose on the back of strong demand for Ti-Pure pigment.
Revenues in the Thermal & Specialized Solutions segment went up 52% year over year to $518 million in the reported quarter. This compares to the consensus estimate of $416.2 million and our estimate of $428.4 million. Volumes increased 15% year over year on continued adoption of Opteon refrigerants and other specialized solutions. Price contributed 39% to the division’s sales growth.
Revenues in the Advanced Performance Materials unit were $401 million, up roughly 11% year over year. This compares to the consensus estimate of $416.5 million and our estimate of $463.4 million. Price contributed 15% to the sales growth. Volumes fell 1% due to supply chain challenges and reduced demand in non-strategic end markets.
Chemours completed the sale of its Mining Solutions business to Draslovka in late 2021. The remaining Chemical Solutions business in the Other segment recorded sales of $28 million in the second quarter. This compares to the consensus estimate of $35.3 million and our estimate of $33.8 million.
Financials
Chemours ended the quarter with cash and cash equivalents of $1,248 million, up roughly 10% year over year. Long-term debt was $3,656 million, down around 8% year over year.
Cash provided by operating activities was $291 million for the reported quarter, up around 14% from the year-ago quarter.
The company repurchased $128 million of common stock during the quarter, resulting in total share repurchases of $272 million in the first half of 2022.
Outlook
Chemours now sees adjusted EBITDA at the top end of its guidance range of $1.475-$1.575 billion for 2022.
Free cash flow for 2022 is now forecast to be more than $600 million, up from more than $550 million it expected earlier.
Price Performance
Shares of Chemours have gained 6.2% in the past year, outperforming the industry’s decline of 8%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Chemours currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , ATI Inc. (ATI - Free Report) and Albemarle Corporation (ALB - Free Report) .
Cabot, currently carrying a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 33% over a year.
ATI, currently sporting a Zacks Rank #1, has a projected earnings growth rate of 1,069.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 12.5% upward in the past 60 days.
ATI’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI shares are up around 21% in a year.
Albemarle has a projected earnings growth rate of 241.8% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 18% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 15% in a year. The company flaunts a Zacks Rank #2 (Buy).