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Kronos Worldwide's (KRO) Q4 Earnings Beat Estimates, Sales Lag
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Kronos Worldwide, Inc. (KRO - Free Report) recorded a loss of 5 cents per share in fourth-quarter 2023, narrower than a loss of 18 cents in the year-ago quarter. The figure was also narrower than the Zacks Consensus Estimate of a loss of 7 cents per share.
Net sales rose around 17% year over year to $400.1 million on higher sales volumes driven by stronger demand for titanium dioxide (TiO2) in primary markets of Europe and North America, which more than offset lower average TiO2 selling prices. The top line, however, missed the Zacks Consensus Estimate of $404.9 million.
Kronos Worldwide Inc Price, Consensus and EPS Surprise
TiO2 production volumes (thousand metric tons) increased 15% year over year to 105 in the fourth quarter. TiO2 sales volumes (thousand metric tons) rose 29% year over year to 106 in the quarter.
Average TiO2 selling prices fell 11% year over year in the quarter.
FY23 Results
Loss per share for 2023 was 43 cents. This compares with earnings of 90 cents per share a year ago. Net sales fell around 14% year over year to $1.7 billion.
Financials
Kronos ended 2023 with cash and cash equivalents of $194.7 million, down roughly 41% year over year. Long-term debt was $440.9 million, up around 4% year over year.
Outlook
The company envisions consumer demand to improve this year and believes customer destocking of TiO2 is largely complete and customer inventories are historically low. It also sees the pricing pressure to be somewhat eased in 2024. It expects sales volumes to rise on a year-over-year basis in 2024.
KRO has increased its production rates in sync with current and expected near-term demand improvement. It expects its production volumes in 2024 will be higher than the level witnessed in 2023.
The company also expects reduced energy costs along with its cost-reduction initiatives to result in improved margins on a year-over-year basis in 2024.
Price Performance
Shares of Kronos have lost 19.2% in the past year compared with a 14.3% decline in the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Kronos currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include, Alpha Metallurgical Resources Inc. (AMR - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The Zacks Consensus Estimate for Alpha Metallurgical Resources’ current-year earnings has been revised upward by 8.8% in the past 60 days. AMR delivered a trailing four-quarter earnings surprise of roughly 24.8%, on average. Its shares are up around 114% in a year. AMR currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 34% in the past year. CRS currently carries a Zacks Rank #1.
The Zacks Consensus Estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied roughly 72% in the past year.
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Kronos Worldwide's (KRO) Q4 Earnings Beat Estimates, Sales Lag
Kronos Worldwide, Inc. (KRO - Free Report) recorded a loss of 5 cents per share in fourth-quarter 2023, narrower than a loss of 18 cents in the year-ago quarter. The figure was also narrower than the Zacks Consensus Estimate of a loss of 7 cents per share.
Net sales rose around 17% year over year to $400.1 million on higher sales volumes driven by stronger demand for titanium dioxide (TiO2) in primary markets of Europe and North America, which more than offset lower average TiO2 selling prices. The top line, however, missed the Zacks Consensus Estimate of $404.9 million.
Kronos Worldwide Inc Price, Consensus and EPS Surprise
Kronos Worldwide Inc price-consensus-eps-surprise-chart | Kronos Worldwide Inc Quote
Volumes and Pricing
TiO2 production volumes (thousand metric tons) increased 15% year over year to 105 in the fourth quarter. TiO2 sales volumes (thousand metric tons) rose 29% year over year to 106 in the quarter.
Average TiO2 selling prices fell 11% year over year in the quarter.
FY23 Results
Loss per share for 2023 was 43 cents. This compares with earnings of 90 cents per share a year ago. Net sales fell around 14% year over year to $1.7 billion.
Financials
Kronos ended 2023 with cash and cash equivalents of $194.7 million, down roughly 41% year over year. Long-term debt was $440.9 million, up around 4% year over year.
Outlook
The company envisions consumer demand to improve this year and believes customer destocking of TiO2 is largely complete and customer inventories are historically low. It also sees the pricing pressure to be somewhat eased in 2024. It expects sales volumes to rise on a year-over-year basis in 2024.
KRO has increased its production rates in sync with current and expected near-term demand improvement. It expects its production volumes in 2024 will be higher than the level witnessed in 2023.
The company also expects reduced energy costs along with its cost-reduction initiatives to result in improved margins on a year-over-year basis in 2024.
Price Performance
Shares of Kronos have lost 19.2% in the past year compared with a 14.3% decline in the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Kronos currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include, Alpha Metallurgical Resources Inc. (AMR - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
The Zacks Consensus Estimate for Alpha Metallurgical Resources’ current-year earnings has been revised upward by 8.8% in the past 60 days. AMR delivered a trailing four-quarter earnings surprise of roughly 24.8%, on average. Its shares are up around 114% in a year. AMR currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Carpenter Technology’s current fiscal year earnings is pegged at $4.00, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have gained around 34% in the past year. CRS currently carries a Zacks Rank #1.
The Zacks Consensus Estimate for Hawkins’ current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied roughly 72% in the past year.