The Chemours Company ( CC Quick Quote 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 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 Quick Quote ALB - Free Report) , Sociedad Quimica y Minera de Chile S.A. ( SQM Quick Quote SQM - Free Report) and Ryerson Holding Corporation ( RYI Quick Quote 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.