Chemours (CC) To Post Q4 Earnings: What's In The Cards?
Zacks Investment Research | Feb 12, 2019 06:18AM ET
The Chemours Company (NYSE:CC) is set to release fourth-quarter 2018 results on Feb 14, after the closing bell.
In the last reported quarter, Chemours delivered positive earnings surprise of 8%. The company’s adjusted earnings per share (EPS) were $1.49, which beat the Zacks Consensus Estimate of $1.38.
Net sales rose around 3% year over year to $1,628 million. However, the figure trailed the Zacks Consensus Estimate of $1,715.8 million.
Notably, Chemours has outpaced the Zacks Consensus Estimate each of the trailing four quarters, with average positive earnings surprise of 14.9%.
The stock lost around 22.6% in the past year compared with the industry 's 21.5% decline.
Let’s see how things are shaping up for this announcement.
Factors at Play in Q4
In November 2018, Chemours stated that it expects adjusted EPS within the upper-half of the $5.10-$5.85 range. Adjusted EBITDA is projected within the lower half of the company’s original guidance of $1.70-$1.85 billion. Free cash flow is expected to be roughly $650 million for 2018.
Notably, the Zacks Consensus Estimate for fourth-quarter consolidated sales is currently pegged at $1,547 million, reflecting an expected decline of 1.8% year over year.
The company expects each of the segments to deliver solid year-over-year bottom- and top-line growth.
For Fluoroproducts, Chemours expects results to gain from the continued adoption of Opteon refrigerants and strong demand for fluoropolymers products. Revenues in the Fluoroproducts segment rose 7% year over year in the third quarter on the back of broad-based demand for Opteon and base refrigerants as well as fluoropolymer products.
Chemical Solutions unit is projected to consistently deliver improved performance driven by strong demand for mining solutions products. The segment is benefiting from broad-based price increases across mining solutions and performance chemicals as well as intermediates business lines.
The company expects the Titanium Technologies segment to witness year-over-year improvement, despite expected volume loss due to customer destocking.
Chemours is witnessing pressure on volumes in Titanium Technologies due to customer destocking across its end markets. The company expects the trend of softer demand to persist through the fourth quarter.
For full-year 2018, Chemours sees persistent volume declines with customer destocking across all end markets. The is likely to lead to a mid-single digit decline in volume on a year-over-year basis. Local prices are expected to be stable.
Get The News You Want
The Chemours Company Price and EPS Surprise
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.