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) Q1 Earnings Beat Estimates, Revenues Lag
Read MoreHide Full Article
The Chemours Company (CC - Free Report) recorded first-quarter 2023 net income of $145 million or 96 cents per share compared with the year-ago quarter's profit of $234 million or $1.43 per share.
Barring one-time items, CC recorded earnings of 98 cents, down 32.9% from the prior-year quarter, beating the Zacks Consensus Estimate of 62 cents.
The company’s net sales in the first quarter were $1,536 million, which missed the Zacks Consensus Estimate of $1,549.5 million. Net sales decreased around 12.9% from $1,764 million reported in the prior-year quarter.
The company’s results in the first quarter were affected by lower volumes and currency headwinds on a year-over-year basis, partly offset by higher pricing.
The Chemours Company Price, Consensus and EPS Surprise
The Titanium Technologies (TT) division logged in revenues of $632 million in the quarter, down 32% year over year. Prices in this segment increased 4%, mitigated by 35% lower volumes. Volumes were hurt by lower demand in all regions. Prices rose on contractual price changes.
Revenues in the Thermal & Specialized Solutions (TSS) segment went up 14% year over year to $486 million in the reported quarter. Volumes increased 10% on the continued adoption of Opteon refrigerants. Price increased 5% across the portfolio, excluding automotive end markets, due to changing market and regulatory dynamics.
Revenues in the Advanced Performance Materials (APM) unit were $388 million, up roughly 1% year over year. Price contributed 10% to the sales growth. This was offset by a volume decline of 7% and a 2% currency headwind.
Financials
Chemours ended the quarter with cash and cash equivalents of $816 million, down around 28.7% year over year. Long-term debt was $3,599 million, down about 2.5%.
Cash used for operating activities was $119 million in the quarter against cash provided of $2 million in the prior-year quarter. CC repurchased $14 million of common stock in the quarter.
Outlook
The company reiterated its guidance for adjusted EBITDA and free cash flow for 2023. It anticipates adjusted EBITDA for 2023 to be between $1.20 and $1.30 billion, and free cash flow of more than $350 million, including about $400 million in capital expenditures.
Price Performance
Shares of Chemours have lost 29.7% in the past year, wider than the industry’s decline of 9.1%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
CC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Steel Dynamics, Inc. (STLD - Free Report) , Linde plc (LIN - Free Report) and PPG Industries, Inc. (PPG - Free Report) .
Steel Dynamics currently carries a Zacks Rank #2 (Buy). Shares of STLD have gained 14% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 10.7% on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Linde, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 12.2% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 4.8% upward in the past 60 days. It has a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 12.8% over the past year.
PPG Industries currently carries a Zacks Rank #2 and has a projected earnings growth rate of 19.8% for the current year. Shares of PPG have gained 0.7% in the past year. It delivered a trailing four-quarter earnings surprise of 6.8% on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Chemours' (CC) Q1 Earnings Beat Estimates, Revenues Lag
The Chemours Company (CC - Free Report) recorded first-quarter 2023 net income of $145 million or 96 cents per share compared with the year-ago quarter's profit of $234 million or $1.43 per share.
Barring one-time items, CC recorded earnings of 98 cents, down 32.9% from the prior-year quarter, beating the Zacks Consensus Estimate of 62 cents.
The company’s net sales in the first quarter were $1,536 million, which missed the Zacks Consensus Estimate of $1,549.5 million. Net sales decreased around 12.9% from $1,764 million reported in the prior-year quarter.
The company’s results in the first quarter were affected by lower volumes and currency headwinds on a year-over-year basis, partly offset by higher pricing.
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 (TT) division logged in revenues of $632 million in the quarter, down 32% year over year. Prices in this segment increased 4%, mitigated by 35% lower volumes. Volumes were hurt by lower demand in all regions. Prices rose on contractual price changes.
Revenues in the Thermal & Specialized Solutions (TSS) segment went up 14% year over year to $486 million in the reported quarter. Volumes increased 10% on the continued adoption of Opteon refrigerants. Price increased 5% across the portfolio, excluding automotive end markets, due to changing market and regulatory dynamics.
Revenues in the Advanced Performance Materials (APM) unit were $388 million, up roughly 1% year over year. Price contributed 10% to the sales growth. This was offset by a volume decline of 7% and a 2% currency headwind.
Financials
Chemours ended the quarter with cash and cash equivalents of $816 million, down around 28.7% year over year. Long-term debt was $3,599 million, down about 2.5%.
Cash used for operating activities was $119 million in the quarter against cash provided of $2 million in the prior-year quarter. CC repurchased $14 million of common stock in the quarter.
Outlook
The company reiterated its guidance for adjusted EBITDA and free cash flow for 2023. It anticipates adjusted EBITDA for 2023 to be between $1.20 and $1.30 billion, and free cash flow of more than $350 million, including about $400 million in capital expenditures.
Price Performance
Shares of Chemours have lost 29.7% in the past year, wider than the industry’s decline of 9.1%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
CC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Steel Dynamics, Inc. (STLD - Free Report) , Linde plc (LIN - Free Report) and PPG Industries, Inc. (PPG - Free Report) .
Steel Dynamics currently carries a Zacks Rank #2 (Buy). Shares of STLD have gained 14% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 10.7% on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Linde, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 12.2% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 4.8% upward in the past 60 days. It has a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 12.8% over the past year.
PPG Industries currently carries a Zacks Rank #2 and has a projected earnings growth rate of 19.8% for the current year. Shares of PPG have gained 0.7% in the past year. It delivered a trailing four-quarter earnings surprise of 6.8% on average.