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What's in the Offing for Chemours (CC) in Q3 Earnings?
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The Chemours Company (CC - Free Report) is set to release third-quarter 2018 results after the bell on Nov 1.
Chemours saw its profits surge 75% year over year to $281 million or $1.53 per share in the second quarter. Adjusted earnings of $1.71 per share for the quarter, topped the Zacks Consensus Estimate of $1.53.
The company gained from continued adoption of Opteon refrigerant, sustained demand for fluoropolymers products and higher prices for Ti-Pure titanium dioxide (TiO2).
Net sales rose around 14% year over year to $1,816 million and surpassed the Zacks Consensus Estimate of $1,802 million. The company saw higher volume across Fluoroproducts and Chemical Solutions segments. The top line was also driven by higher global average prices in Titanium Technologies and Fluoroproducts.
Chemours has outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 15.6%.
The company’s shares have lost around 26.5% over the past three months, underperforming the industry's decline of 17.1%.
Let’s see how things are shaping up for this announcement.
Factors to Watch For
Chemours, in its second-quarter call, noted that it expects that its adjusted EBITDA will be at the top end of its earlier announced range based on its solid first-half results and visibility into the balance of 2018. Over the long term, the company remains confident in meeting or exceeding its three-year financial targets.
Chemours’ board also authorized a $750 million share repurchase plan. Moreover, its board announced a quarterly cash dividend of 25 cents per share for the third quarter, a 47% increase from the previous payout of 17 cents per share.
Revenues for Chemours for the third quarter is projected to rise roughly 8.3% year over year as the Zacks Consensus Estimate for the quarter is currently pegged at $1,716 million.
Chemours is expected to gain from favorable pricing and demand in the Fluoroproducts segment in the to-be-reported quarter. Sustained adoption of the Opteon refrigerant platform and higher prices are likely to drive results in this segment.
Moreover, increased adoption of Ti-Pure TiO2 products is driving results in the company’s Titanium Technologies division. Higher global prices for Ti-Pure TiO2 are driving profitability for the segment. Chemours is benefiting from its actions to hike Ti-Pure prices.
However, the company is exposed to headwinds from higher raw material and distribution costs. Input cost pressure is expected to continue in the September quarter. This along with costs related to planned maintenance at fluoropolymer facilities are likely to put some pressure on margins in the third quarter.
Our proven model does not conclusively show that Chemours is likely to beat the Zacks Consensus Estimate this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below:
Earnings ESP: Earnings ESP for Chemours is currently pegged at 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at $1.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Chemours currently carries a Zacks Rank #5 (Strong Sell). Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Nutrien Ltd. (NTR - Free Report) has an Earnings ESP of +10.43% and carries a Zacks Rank #2.
Domtar Corporation has an Earnings ESP of +7.90% and carries a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
What's in the Offing for Chemours (CC) in Q3 Earnings?
The Chemours Company (CC - Free Report) is set to release third-quarter 2018 results after the bell on Nov 1.
Chemours saw its profits surge 75% year over year to $281 million or $1.53 per share in the second quarter. Adjusted earnings of $1.71 per share for the quarter, topped the Zacks Consensus Estimate of $1.53.
The company gained from continued adoption of Opteon refrigerant, sustained demand for fluoropolymers products and higher prices for Ti-Pure titanium dioxide (TiO2).
Net sales rose around 14% year over year to $1,816 million and surpassed the Zacks Consensus Estimate of $1,802 million. The company saw higher volume across Fluoroproducts and Chemical Solutions segments. The top line was also driven by higher global average prices in Titanium Technologies and Fluoroproducts.
Chemours has outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 15.6%.
The company’s shares have lost around 26.5% over the past three months, underperforming the industry's decline of 17.1%.
Let’s see how things are shaping up for this announcement.
Factors to Watch For
Chemours, in its second-quarter call, noted that it expects that its adjusted EBITDA will be at the top end of its earlier announced range based on its solid first-half results and visibility into the balance of 2018. Over the long term, the company remains confident in meeting or exceeding its three-year financial targets.
Chemours’ board also authorized a $750 million share repurchase plan. Moreover, its board announced a quarterly cash dividend of 25 cents per share for the third quarter, a 47% increase from the previous payout of 17 cents per share.
Revenues for Chemours for the third quarter is projected to rise roughly 8.3% year over year as the Zacks Consensus Estimate for the quarter is currently pegged at $1,716 million.
Chemours is expected to gain from favorable pricing and demand in the Fluoroproducts segment in the to-be-reported quarter. Sustained adoption of the Opteon refrigerant platform and higher prices are likely to drive results in this segment.
Moreover, increased adoption of Ti-Pure TiO2 products is driving results in the company’s Titanium Technologies division. Higher global prices for Ti-Pure TiO2 are driving profitability for the segment. Chemours is benefiting from its actions to hike Ti-Pure prices.
However, the company is exposed to headwinds from higher raw material and distribution costs. Input cost pressure is expected to continue in the September quarter. This along with costs related to planned maintenance at fluoropolymer facilities are likely to put some pressure on margins in the third quarter.
Chemours Company (The) Price and EPS Surprise
Chemours Company (The) price-eps-surprise | Chemours Company (The) Quote
Earnings Whispers
Our proven model does not conclusively show that Chemours is likely to beat the Zacks Consensus Estimate this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below:
Earnings ESP: Earnings ESP for Chemours is currently pegged at 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at $1.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Chemours currently carries a Zacks Rank #5 (Strong Sell). Note that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
CF Industries Holdings, Inc. (CF - Free Report) has an Earnings ESP of +36.36% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien Ltd. (NTR - Free Report) has an Earnings ESP of +10.43% and carries a Zacks Rank #2.
Domtar Corporation has an Earnings ESP of +7.90% and carries a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>