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Tronox (TROX) Q4 Earnings In Line, Revenues Lag Estimates
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Tronox Holdings plc (TROX - Free Report) recorded net income from continuing operations (attributable to the company) of breakeven per share in fourth-quarter 2019 against a net loss of 5 cents per share a year ago.
The bottom line in the reported quarter include an inventory step-up charge, transaction costs, restructuring and integration costs, loss on extinguishment of debt, a gain on pension settlement and a charge for a capital gains tax payment.
Barring one-time items, adjusted earnings per share (EPS) for the reported quarter were 14 cents, in line with the Zacks Consensus Estimate.
Revenues jumped around 62% year over year to $693 million in the reported quarter. The upside can be attributed to higher year over year titanium dioxide (TiO2) pigment sales. However, revenues missed the Zacks Consensus Estimate of $723.7 million.
Product Revenues
Revenues (on a reported basis) from TiO2 pigment climbed 116% year over year to $544 million in the quarter. Sales included contributions from the acquired operations of Cristal.
Zircon sales declined 13% to $71 million due to weak market conditions.
Feedstock and other products’ sales fell around 18% to $78 million.
Full-Year Results
Loss (as reported) from continuing operations for 2019 was 81 cents per share, compared with a loss of 6 cents per share a year ago. Adjusted earnings were 47 cents per share for the year.
Revenues were $2,642 million for the full year, up around 45% year over year.
Financials
The company ended 2019 with cash and cash equivalents of $302 million, down around 71% year over year. Long-term debt was $2,988 million, down around 5% year over year.
Cash provided by operating activities was $412 million for 2019, up from $170 million in 2018.
The company returned around $315 million to shareholders through share buybacks and dividend payments in 2019. It has also raised its quarterly dividend by 56%.
Outlook
The company expects revenues of $3-3.3 billion for 2020. It also anticipates adjusted EBITDA of $700-$800 million for the year.
Tronox also projects adjusted EPS in the range of 55 cents to $1.10 for 2020. The company also expects adjusted free cash flow of more than $200 million for the year.
Price Performance
Shares of Tronox have lost 34.6% over a year, compared with the industry’s 32.1% decline.
Zacks Rank & Stocks to Consider
Tronox currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space include Daqo New Energy Corp. (DQ - Free Report) , NovaGold Resources Inc. (NG - Free Report) and Commercial Metals Company (CMC - Free Report) .
Daqo New Energy has projected earnings growth rate of 353.7% for 2020 and sports a Zacks Rank #1 (Strong Buy). The company’s shares have rallied roughly 93% in a year’s time. You can see the complete list of today’s Zacks #1 Rank stocks here.
NovaGold has projected earnings growth rate of 11.1% for the current fiscal and carries a Zacks Rank #2 (Buy). The company’s shares have surged around 131% over a year.
Commercial Metals has estimated earnings growth rate of 20.7% for the current fiscal and carries a Zacks Rank #2. The company’s shares have shot up roughly 16% in a year’s time.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Tronox (TROX) Q4 Earnings In Line, Revenues Lag Estimates
Tronox Holdings plc (TROX - Free Report) recorded net income from continuing operations (attributable to the company) of breakeven per share in fourth-quarter 2019 against a net loss of 5 cents per share a year ago.
The bottom line in the reported quarter include an inventory step-up charge, transaction costs, restructuring and integration costs, loss on extinguishment of debt, a gain on pension settlement and a charge for a capital gains tax payment.
Barring one-time items, adjusted earnings per share (EPS) for the reported quarter were 14 cents, in line with the Zacks Consensus Estimate.
Revenues jumped around 62% year over year to $693 million in the reported quarter. The upside can be attributed to higher year over year titanium dioxide (TiO2) pigment sales. However, revenues missed the Zacks Consensus Estimate of $723.7 million.
Product Revenues
Revenues (on a reported basis) from TiO2 pigment climbed 116% year over year to $544 million in the quarter. Sales included contributions from the acquired operations of Cristal.
Zircon sales declined 13% to $71 million due to weak market conditions.
Feedstock and other products’ sales fell around 18% to $78 million.
Full-Year Results
Loss (as reported) from continuing operations for 2019 was 81 cents per share, compared with a loss of 6 cents per share a year ago. Adjusted earnings were 47 cents per share for the year.
Revenues were $2,642 million for the full year, up around 45% year over year.
Financials
The company ended 2019 with cash and cash equivalents of $302 million, down around 71% year over year. Long-term debt was $2,988 million, down around 5% year over year.
Cash provided by operating activities was $412 million for 2019, up from $170 million in 2018.
The company returned around $315 million to shareholders through share buybacks and dividend payments in 2019. It has also raised its quarterly dividend by 56%.
Outlook
The company expects revenues of $3-3.3 billion for 2020. It also anticipates adjusted EBITDA of $700-$800 million for the year.
Tronox also projects adjusted EPS in the range of 55 cents to $1.10 for 2020. The company also expects adjusted free cash flow of more than $200 million for the year.
Price Performance
Shares of Tronox have lost 34.6% over a year, compared with the industry’s 32.1% decline.
Zacks Rank & Stocks to Consider
Tronox currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space include Daqo New Energy Corp. (DQ - Free Report) , NovaGold Resources Inc. (NG - Free Report) and Commercial Metals Company (CMC - Free Report) .
Daqo New Energy has projected earnings growth rate of 353.7% for 2020 and sports a Zacks Rank #1 (Strong Buy). The company’s shares have rallied roughly 93% in a year’s time. You can see the complete list of today’s Zacks #1 Rank stocks here.
NovaGold has projected earnings growth rate of 11.1% for the current fiscal and carries a Zacks Rank #2 (Buy). The company’s shares have surged around 131% over a year.
Commercial Metals has estimated earnings growth rate of 20.7% for the current fiscal and carries a Zacks Rank #2. The company’s shares have shot up roughly 16% in a year’s time.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>