Yahoo Finance Kronos Worldwide (KRO) Up 9.1% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Kronos Worldwide (KRO). Shares have added about 9.1% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Kronos Worldwide’s Earnings & Sales Top Estimates in Q1
Kronos Worldwide recorded earnings of 7 cents per share in first-quarter 2024. This compares to a loss of 13 cents in the year-ago quarter. The figure topped the Zacks Consensus Estimate of 4 cents.
Net sales rose around 12% year over year to $478.8 million on higher sales volumes driven by stronger demand for TiO2 in major markets, which more than offset lower average TiO2 selling prices. The top line beat the Zacks Consensus Estimate of $454.6 million.
Volumes and Pricing
TiO2 production volumes (thousand metric tons) increased 15% year over year to 121 in the first quarter. TiO2 sales volumes (thousand metric tons) rose 28% year over year to 130 in the quarter.
Average TiO2 selling prices fell 11% year over year in the quarter.
Financials
Kronos ended the quarter with cash and cash equivalents of $120.7 million, down roughly 38% sequentially. Long-term debt was $426.9 million, down around 3% on a sequential comparison basis.
Outlook
The company expects sales volumes in 2024 to exceed 2023 levels factoring in the recently experienced improved demand and expectations that demand will continue to improve this year.
Kronos has increased its production rates in sync with current and expected near-term demand improvement. It expects its production rates for the balance of 2024 to be higher than the level witnessed in 2023.
The company expects to report higher operating results on a year-over-year basis for full-year 2024 based on the expected improved demand, higher selling prices and reduced production costs.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 169.29% due to these changes.
VGM Scores
Currently, Kronos Worldwide has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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 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.
Performance of an Industry Player
Kronos Worldwide belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Methanex (MEOH), has gained 1.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
Methanex reported revenues of $916 million in the last reported quarter, representing a year-over-year change of -11.8%. EPS of $0.65 for the same period compares with $1.11 a year ago.
Methanex is expected to post earnings of $0.52 per share for the current quarter, representing a year-over-year change of -13.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Methanex. Also, the stock has a VGM Score of C.
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Kronos Worldwide Inc (KRO) : Free Stock Analysis Report
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