A month has gone by since the last earnings report for Kronos Worldwide (KRO Quick QuoteKRO - Free Report) . Shares have added about 22.3% 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 catalysts.

Kronos Worldwide’s Earnings & Sales Beat Estimates in Q1

Kronos Worldwide logged a profit of $27 million or 23 cents per share in first-quarter 2020, down from $30.3 million or 26 cents in the year-ago quarter. Earnings, however, topped the Zacks Consensus Estimate of 15 cents.

Results in the reported quarter were impacted by lower sales volumes and increased raw materials as well as other production costs.

Net sales fell 4% year over year to $421 million, hurt by lower sales volumes. However, the figure beat the Zacks Consensus Estimate of $416 million.

Volumes and Pricing

The company’s TiO2 sales volumes fell 5% year over year due to lower volumes in North American, Latin American and export markets, partly offset by increased volumes in the European market. TiO2 production volumes were down 1% year over year in the reported quarter.

Average TiO2 selling prices were flat year over year in the reported quarter.

Financials

Kronos Worldwide ended the quarter with cash and cash equivalents of $341.5 million, up around 1% year over year. Long-term debt was $436.3 million, down around 2% year over year.

Net cash used in operating activities was $9.8 million for the reported quarter.

Outlook

Kronos Worldwide said that the coronavirus pandemic had limited impact on its operations and financial performance in the first quarter of 2020. The company expects global gross domestic product to be considerably impacted for an indeterminate period. Factoring in the impact of the pandemic on the world economy, the company envisions its sales and earnings to be lower than what it had originally expected for 2020.
 

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -77.78% due to these changes.

VGM Scores

At this time, Kronos Worldwide has a poor Growth Score of F, a grade with the same score on the momentum front. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Kronos Worldwide has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.