Kronos Worldwide, Inc.
KRO
recorded profits of $10.2 million or 9 cents per share in fourth-quarter 2020, up from $9.4 million or 8 cents per share in the year-ago quarter. Earnings per share topped the Zacks Consensus Estimate of 4 cents.
The bottom line in the reported quarter was aided by higher income from operations on increased sales volumes and lower production costs, partly masked by reduced average titanium dioxide (TiO2) selling prices.
Net sales rose roughly 11% year over year to $414.9 million, driven by higher sales volumes, partly offset by lower average TiO2 selling prices. The figure beat the Zacks Consensus Estimate of $361.1 million.
Kronos Worldwide Inc Price, Consensus and EPS Surprise
Kronos Worldwide Inc price-consensus-eps-surprise-chart
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Kronos Worldwide Inc Quote
Volumes and Pricing
The company’s TiO2 sales volumes went up 12% year over year in the reported quarter due to higher demand in European and North American markets. TiO2 production volumes were down 8% year over year in the quarter.
Average TiO2 selling prices were down 3% year over year in the quarter.
FY20 Results
Earnings (as reported) for full-year 2020 were 55 cents per share, compared with earnings of 75 cents per share a year ago. Revenues dropped around 5% year over year to $1.6 billion for the full year.
Financials
Kronos Worldwide ended 2020 with cash and cash equivalents of $355.3 million, down around 9% year over year. Long-term debt was $486.7 million, up roughly 10% year over year.
Net cash provided by operating activities was $102.5 million for full-year 2020.
Outlook
Kronos Worldwide witnessed higher demand for its products in the back half of 2020 despite the impacts of the coronavirus pandemic, and expect these demand levels to continue into 2021. The company expects its sales and income from operations for 2021 to be higher on a year-over-year basis, mainly due to higher average TiO2 selling prices and sales volumes. It also sees production volumes for this year to be modestly higher year over year, in sync with an expected increase in demand for its products. Kronos Worldwide also expects TiO2 selling prices to rise modestly in 2021.
Price Performance
Shares of Kronos Worldwide have rallied 96.6% over a year compared with 82.2% rise of the
industry
.
Zacks Rank & Key Picks
Kronos Worldwide currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include
Fortescue Metals Group Limited
FSUGY
and
BHP Group
BHP
,
Impala Platinum Holdings Limited
IMPUY
.
Fortescue has a projected earnings growth rate of 107.8% for the current fiscal. The company’s shares have surged around 182% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
BHP Group has a projected earnings growth rate of 76.8% for the current fiscal year. The company’s shares have shot up around 101% in a year. It currently carries a Zacks Rank #1.
Impala Platinum has an expected earnings growth rate of 187% for the current fiscal. The company’s shares have rallied around 142% in the past year. It currently carries a Zacks Rank #1.
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