Kronos Worldwide Reports Strong Turnaround in Q3 2024 Earnings
Kronos Worldwide, Inc. (KRO) has announced earnings of 62 cents per share for the third quarter of 2024, showing a significant improvement from a loss of 18 cents in the same quarter last year. This performance surpassed the Zacks Consensus Estimate of 34 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Kronos’s net sales rose approximately 22% year-over-year to $484.7 million, driven by increased sales volumes linked to higher demand for titanium dioxide (TiO2) across its major markets. However, this increase was partially offset by lower average selling prices for TiO2. The revenue fell short of the Zacks Consensus Estimate of $588.6 million.
Kronos Worldwide Inc: Price, Consensus, and EPS Surprise
Kronos Worldwide Inc price-consensus-eps-surprise-chart | Kronos Worldwide Inc Quote
KRO’s Production and Pricing Dynamics
TiO2 production volumes increased by 37% year-over-year, totaling 141 thousand metric tons in Q3. Sales volumes for TiO2 also grew by 21% to reach 130 thousand metric tons, while average selling prices declined by 1% during the same period.
The TiO2 segment profit stood at $43.4 million, in stark contrast to a loss of $21.4 million recorded a year prior. This positive change is largely attributed to improved operational income resulting from the rise in both sales and production volumes, along with a decrease in production costs, albeit partially affected by lower average selling prices.
Financial Overview of Kronos Worldwide
At the end of the quarter, Kronos reported cash and cash equivalents amounting to $94.8 million, reflecting a decrease of about 29% from the previous quarter. Long-term debt rose by 11% sequentially to $470.4 million.
KRO’s Future Outlook
Kronos indicated that customer demand slowed during Q3 compared to the first half of the year across all major markets. Looking ahead, the company expects demand to further decline in Q4. However, Kronos anticipates that sales volumes for 2024 will exceed those of 2023, leveraging the improved demand witnessed through the first nine months of the year and considering the substantial drop in demand experienced during much of 2023.
The company projects a year-over-year increase in operating results for 2024, driven by better demand, modest price increases, and lower production costs.
Stock Performance of KRO
Kronos shares have surged 76.1% over the past year, significantly outperforming the Zacks Chemicals Diversified industry, which rose by 9.9%.
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KRO’s Zacks Rank & Other Relevant Chemical Sector Updates
Currently, KRO holds a Zacks Rank #3 (Hold). For more information, you can find the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DuPont de Nemours, Inc. (DD) reported adjusted earnings of $1.18 per share for the third quarter, outperforming the Zacks Consensus Estimate of $1.04. The firm has raised its full-year 2024 guidance for operating EBITDA and adjusted earnings per share.
The Chemours Company (CC) posted adjusted earnings of 40 cents, exceeding the Zacks Consensus Estimate of 32 cents. CC anticipates a mid to high-single-digit decline in consolidated net sales for Q4.
PPG Industries, Inc. (PPG) reported adjusted earnings of $2.13 per share, slightly missing the Zacks Consensus Estimate of $2.15. The company expects flat organic sales and indicates that full-year adjusted earnings per share will be at the lower end of the $8.15 to $8.30 range for 2024.
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