Back to top

Image: Bigstock

Chemours' Earnings and Revenues Surpass Estimates in Q3

Read MoreHide Full Article

Key Takeaways

  • The Chemours Company reported earnings of 40 cents a share, beating estimates of 32 cents.
  • Shares of CC are down nearly 20% this past year, compared to the total chemical industry’s 8.3% rise.
  • Register now to see our 7 Best Stocks for the Next 30 Days report – free today!

The Chemours Company (CC - Free Report) recorded a loss of $27 million or 18 cents per share in third-quarter 2024. This compares to a profit of $12 million or 8 cents in the year-ago quarter. Barring one-time items, earnings came in at 40 cents. It topped the Zacks Consensus Estimate of 32 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company reported net sales of $1,501 million in the third quarter, up nearly 1% year over year. It beat the Zacks Consensus Estimate of $1,425.2 million. A 5% rise in volumes was partly offset by a 3% decline in price and a modest 1% currency headwind. CC saw record third-quarter sales in its Thermal & Specialized Solutions division, driven by the growth in Opteon refrigerants.

The Chemours Company Price, Consensus and EPS Surprise

The Chemours Company Price, Consensus and EPS Surprise

The Chemours Company price-consensus-eps-surprise-chart | The Chemours Company Quote

CC’s Segment Highlights

The Thermal & Specialized Solutions division recorded sales of $460 million for the quarter, reflecting a 6% rise compared to the previous year. This was above the consensus estimate of $437.9 million. This upside was driven by an 8% increase in volumes, partly offset by a 2% decline in prices.

In the Titanium Technologies segment, revenues fell 2% year-over-year to $679 million in the reported quarter. This was above the consensus estimate of $626.3 million. The downside was mainly due to a 2% decline in pricing, partly masked by a 1% increase in volumes.

Sales in the Advanced Performance Materials unit were $348 million, up 1% year over year. It beat the consensus estimate of $345.8 million. The uptick was driven by a 9% increase in volumes, partly offset by a 7% decline in pricing and a 1% currency headwind.

Chemours’ Financials

Chemours ended the quarter with cash and cash equivalents of $596 million, down around 1% sequentially. Long-term debt was $3,988 million, up roughly 1% from the prior quarter.

Cash provided by operating activities for the reported quarter was $139 million compared with $131 million in the year-ago quarter.

CC’s Q4 Outlook

The company expects consolidated net sales to decline in the mid to high-single digits sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range compared with third-quarter 2024 results. 

CC forecasts a sequential low-teens sales decline in the Thermal & Specialized Solutions unit in the fourth quarter due to refrigerant seasonality. It expects the segment to maintain double-digit year-over-year growth in Opteon. Adjusted EBITDA for the segment is forecast to decline in the low-20% range sequentially due to refrigerant seasonality

The company expects a mid-to-high-single-digit sequential sales decline in Titanium Technologies in the fourth quarter on seasonality-driven lower volumes. Adjusted EBITDA for the unit is forecast to decline between mid-to-high teens.

For Advanced Performance Materials, CC expects a low-single-digit sales decline in the fourth quarter due to macro weakness in advanced materials end markets, partly offset by gains in performance solutions. Adjusted EBITDA for the segment is forecast to be flat sequentially, supported by the favorable contribution from performance solutions sales and cost-reduction actions.

CC Stock’s Price Performance

Chemours’ shares are down 19.9% in the past year compared with the Zacks Chemicals Diversified industry’s 8.3% rise.

Zacks Investment Research Image Source: Zacks Investment Research

CC’s Zacks Rank & Other Key Picks

CC currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the Basic Materials space are IAMGOLD Corporation (IAG - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and Sandstorm Gold Ltd. (SAND - Free Report) . While IAMGOLD carries a Zacks Rank #1 (Strong Buy), both Barrick Gold and Sandstorm Gold carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IAMGOLD is scheduled to release third-quarter results on Nov. 7. The Zacks Consensus Estimate for IAG’s third-quarter earnings is pegged at 11 cents. IAG beat the consensus estimate in each of the last four quarters with the average surprise being 200%. Its shares have shot up roughly 120% in the past year. 

Barrick Gold is slated to release third-quarter results on Nov. 7. The consensus estimate for GOLD’s third-quarter earnings is pegged at 33 cents. The company's shares have rallied roughly 20% in the past year. 

Sandstorm Gold is scheduled to release third-quarter results on Nov. 7. The Zacks Consensus Estimate for SAND’s third-quarter earnings is pegged at 3 cents. SAND has rallied around 36% in the past year.

Published in