We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chemours (CC) Earnings and Revenues Top Estimates in Q3
Read MoreHide Full Article
The Chemours Company (CC - Free Report) posted a profit of $240 million or $1.52 per share in the third quarter of 2022, up from a profit of $214 million or $1.27 in the year-ago quarter.
Barring one-time items, earnings came in at $1.24 per share for the reported quarter, topping the Zacks Consensus Estimate of $1.16.
Net sales rose around 6% year over year to $1,777 million, beating the Zacks Consensus Estimate of $1,771.5 million.
Prices contributed favorably to the top line growth in the reported quarter. The company, however, faced volume and currency headwinds in the quarter. Prices rose 18% while volumes fell 5%.
The Chemours Company Price, Consensus and EPS Surprise
The Titanium Technologies division logged revenues of $877 million in the quarter, down 3% year over year. Volumes fell 16% year over year while prices increased 16%. Volumes were hurt by lower demand, especially in Europe and Asia. Prices rose on the back of contractual price changes.
Revenues in the Thermal & Specialized Solutions segment went up 31% year over year to $417 million in the reported quarter. Volumes increased 8% year over year on continued adoption of Opteon refrigerants. Price contributed 25% to the division’s sales growth.
Revenues in the Advanced Performance Materials unit were $450 million, up roughly 26% year over year. Price contributed 23% to the sales growth. Volumes rose 9% on increased global customer demand across key markets, partly offset by 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 $33 million in the third quarter.
Financials
Chemours ended the quarter with cash and cash equivalents of $1,167 million, up roughly 13% year over year. Long-term debt was $3,510 million, down around 8% year over year.
Cash provided by operating activities was $301 million for the reported quarter, down around 3% from the year-ago quarter.
The company repurchased $79 million of common stock during the quarter, resulting in total share repurchases of $351 million as of Sep 30, 2022.
Outlook
Chemours sees adjusted EBITDA in the range of $1.4-$1.45 billion for 2022.
Free cash flow for 2022 is forecast to be more than $575 million.
Price Performance
Shares of Chemours have gained 3.9% in the past year, outperforming the industry’s decline of 12%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Chemours currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Ryerson Holding Corporation (RYI - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 430.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 22% in a year.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 80% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 33% over a year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Chemours (CC) Earnings and Revenues Top Estimates in Q3
The Chemours Company (CC - Free Report) posted a profit of $240 million or $1.52 per share in the third quarter of 2022, up from a profit of $214 million or $1.27 in the year-ago quarter.
Barring one-time items, earnings came in at $1.24 per share for the reported quarter, topping the Zacks Consensus Estimate of $1.16.
Net sales rose around 6% year over year to $1,777 million, beating the Zacks Consensus Estimate of $1,771.5 million.
Prices contributed favorably to the top line growth in the reported quarter. The company, however, faced volume and currency headwinds in the quarter. Prices rose 18% while volumes fell 5%.
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 $877 million in the quarter, down 3% year over year. Volumes fell 16% year over year while prices increased 16%. Volumes were hurt by lower demand, especially in Europe and Asia. Prices rose on the back of contractual price changes.
Revenues in the Thermal & Specialized Solutions segment went up 31% year over year to $417 million in the reported quarter. Volumes increased 8% year over year on continued adoption of Opteon refrigerants. Price contributed 25% to the division’s sales growth.
Revenues in the Advanced Performance Materials unit were $450 million, up roughly 26% year over year. Price contributed 23% to the sales growth. Volumes rose 9% on increased global customer demand across key markets, partly offset by 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 $33 million in the third quarter.
Financials
Chemours ended the quarter with cash and cash equivalents of $1,167 million, up roughly 13% year over year. Long-term debt was $3,510 million, down around 8% year over year.
Cash provided by operating activities was $301 million for the reported quarter, down around 3% from the year-ago quarter.
The company repurchased $79 million of common stock during the quarter, resulting in total share repurchases of $351 million as of Sep 30, 2022.
Outlook
Chemours sees adjusted EBITDA in the range of $1.4-$1.45 billion for 2022.
Free cash flow for 2022 is forecast to be more than $575 million.
Price Performance
Shares of Chemours have gained 3.9% in the past year, outperforming the industry’s decline of 12%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Chemours currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks worth considering in the basic materials space include Albemarle Corporation (ALB - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Ryerson Holding Corporation (RYI - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 430.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 5.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 24.2%, on average. ALB has gained around 22% in a year.
Sociedad has a projected earnings growth rate of 530.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 2.1% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 80% in a year. The company currently carries a Zacks Rank #1.
Ryerson Holding, currently carrying a Zacks Rank #1, has an expected earnings growth rate of 74.2% for the current year. The consensus estimate for RYI's earnings for the current year has been revised 3.2% upward in the past 60 days.
Ryerson Holding’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 28.9%. RYI has gained around 33% over a year.