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Kronos Worldwide (KRO) Up 18.5% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Kronos Worldwide (KRO - Free Report) . Shares have added about 18.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kronos Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Kronos Worldwide's Q4 Earnings Beat Estimates, Sales Lag
Kronos Worldwide 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 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.
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.
Kronos 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 166.67% due to these changes.
VGM Scores
At this time, Kronos Worldwide has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Kronos Worldwide has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Kronos Worldwide (KRO) Up 18.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Kronos Worldwide (KRO - Free Report) . Shares have added about 18.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kronos Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Kronos Worldwide's Q4 Earnings Beat Estimates, Sales Lag
Kronos Worldwide 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 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.
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.
Kronos 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 166.67% due to these changes.
VGM Scores
At this time, Kronos Worldwide has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Kronos Worldwide has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.