The Chemours Company (NYSE:CC – Get Free Report)’s stock price gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $17.93, but opened at $16.01. Chemours shares last traded at $14.94, with a volume of 1,057,830 shares traded.
The specialty chemicals company reported $0.42 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.08). The firm had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.65 billion. Chemours had a positive return on equity of 52.49% and a negative net margin of 6.82%.The business’s revenue was down 1.5% compared to the same quarter last year. During the same period in the previous year, the firm earned ($2.54) EPS.
Chemours Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be given a $0.0875 dividend. This represents a $0.35 annualized dividend and a yield of 2.3%. The ex-dividend date is Friday, August 14th. Chemours’s payout ratio is currently -13.26%.
Chemours News Summary
- Positive Sentiment: Chemours reported a second-quarter adjusted profit of $0.42 per share, a significant improvement from the $2.53 per-share loss reported in the year-ago quarter. The company also generated $158 million in operating cash flow and $114 million in free cash flow. Chemours Second Quarter Results
- Positive Sentiment: Titanium Technologies sales increased 1% year over year to $661 million, while management highlighted growth opportunities tied to data-center applications. Full-year expectations remain intact for 1% to 5% sales growth and adjusted EBITDA of $775 million to $825 million. Chemours Data Center Growth and Litigation
- Positive Sentiment: The board declared a quarterly dividend of $0.0875 per share, payable September 15 to shareholders of record August 14. The payment represents an annualized dividend of $0.35 and an indicated yield of approximately 2%. Chemours Third Quarter Dividend
- Neutral Sentiment: Third-quarter revenue guidance of $1.5 billion to $1.6 billion and full-year guidance of $5.9 billion to $6.1 billion are broadly near Wall Street expectations, offering limited new upside or downside from the outlook.
- Neutral Sentiment: Recent institutional activity was mixed, with some funds adding shares while major investors including BlackRock and Fidelity reduced their positions.
- Negative Sentiment: Second-quarter adjusted EPS of $0.42 and revenue of $1.59 billion missed analyst estimates of approximately $0.50 and $1.65 billion, respectively. Revenue declined about 1% year over year, and adjusted EBITDA fell to $247 million from $260 million. Chemours Misses Q2 Estimates
- Negative Sentiment: Litigation expenses weighed on results and overshadowed otherwise favorable data-center demand. Chemours also carried approximately $3.9 billion of gross debt at quarter-end, keeping leverage and legal liabilities as important risks for investors.
Analyst Ratings Changes
CC has been the subject of several research reports. UBS Group increased their price objective on shares of Chemours from $29.00 to $30.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Morgan Stanley upped their target price on shares of Chemours from $17.00 to $21.00 and gave the company an “equal weight” rating in a research report on Monday, May 11th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Chemours in a report on Friday, July 17th. Royal Bank Of Canada lifted their price target on Chemours from $26.00 to $29.00 and gave the stock an “outperform” rating in a research report on Monday, May 11th. Finally, Alembic Global Advisors reissued an “overweight” rating and set a $30.00 price objective on shares of Chemours in a research note on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $23.80.
Get Our Latest Report on Chemours
Institutional Inflows and Outflows
A number of hedge funds have recently bought and sold shares of the company. Parallel Advisors LLC lifted its holdings in shares of Chemours by 10.9% in the 1st quarter. Parallel Advisors LLC now owns 5,366 shares of the specialty chemicals company’s stock worth $118,000 after acquiring an additional 527 shares during the last quarter. Oregon Public Employees Retirement Fund raised its position in Chemours by 1.8% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 34,300 shares of the specialty chemicals company’s stock worth $404,000 after purchasing an additional 600 shares during the period. PFG Investments LLC raised its position in Chemours by 7.6% in the 4th quarter. PFG Investments LLC now owns 12,494 shares of the specialty chemicals company’s stock worth $147,000 after purchasing an additional 883 shares during the period. State of Alaska Department of Revenue lifted its stake in Chemours by 1.2% in the fourth quarter. State of Alaska Department of Revenue now owns 76,257 shares of the specialty chemicals company’s stock worth $899,000 after purchasing an additional 932 shares during the last quarter. Finally, Man Group plc boosted its position in shares of Chemours by 0.4% during the second quarter. Man Group plc now owns 271,108 shares of the specialty chemicals company’s stock valued at $3,104,000 after buying an additional 979 shares during the period. Institutional investors own 76.26% of the company’s stock.
Chemours Stock Down 16.0%
The firm has a market cap of $2.27 billion, a PE ratio of -5.71 and a beta of 1.43. The company has a 50-day simple moving average of $19.67 and a 200-day simple moving average of $20.06. The company has a debt-to-equity ratio of 18.98, a current ratio of 1.82 and a quick ratio of 0.87.
Chemours Company Profile
Chemours Company, established in 2015 as a spin-off from E. I. du Pont de Nemours and Company, is a global chemistry organization headquartered in Wilmington, Delaware. Since its formation, Chemours has focused on delivering performance chemicals that help customers lower their carbon footprint, increase energy efficiency and conserve water. The company operates with a commitment to safety, environmental stewardship and innovation.
Chemours’ principal business activities are organized into three core segments.
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