Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1699
    +0.0006 (+0.05%)
     
  • GBP/USD

    1.2620
    -0.0003 (-0.02%)
     
  • Bitcoin GBP

    55,210.94
    -777.81 (-1.39%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

Tronox (TROX) Earnings Beat, Revenues Lag Estimates in Q3

Tronox Holdings plc TROX recorded loss from continuing operations (attributable to the company) of $19 million or 13 cents per share in third-quarter 2019 against profits of $6 million or 5 cents per share a year ago.

Barring one-time items, adjusted earnings per share (EPS) for the reported quarter were 21 cents, which surpassed the Zacks Consensus Estimate of 15 cents.

Revenues grew around 68% year over year to $768 million in the reported quarter. The upside can be attributed to higher titanium dioxide (TiO2) pigment sales. However, revenues missed the Zacks Consensus Estimate of $818.7 million.

Product Revenues

Revenues from TiO2 pigment rose 96% year over year to $603 million. Sales included contributions from the acquired operations of Cristal.

ADVERTISEMENT

Zircon sales declined 6% to $68 million due to weak market conditions.

Feedstock and other products’ sales rose around 45% to $97 million.

Financials

The company ended the quarter with cash and cash equivalents of $305 million, down 71.7% year over year. Long-term debt was $3,067 million, down 2.4% year over year.

Cash provided by operating activities was $237 million for the first nine months of 2019.

Capital expenditure was $140 million for the first nine months of 2019.

Outlook

The company revised its guidance for 2019. It now expects revenues of $2,650-$2,700 million for the year. The company anticipates adjusted EBITDA of $615-$635 million for the year.

It now projects adjusted EPS of 33-44 cents for 2019. The company expects free cash flow of $120-$135 million for the year.

Price Performance

Shares of Tronox have lost 6.8% over a year, outperforming the industry’s 21.5% decline.

 

 

Zacks Rank & Stocks to Consider

Tronox currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Impala Platinum Holdings Ltd. IMPUY, Franco-Nevada Corporation FNV and Agnico Eagle Mines Limited AEM, currently flaunting a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Impala Platinum has an expected earnings growth rate of 248.3% for the current fiscal year. The company’s shares have surged 264.1% in the past year.

Franco-Nevada has a projected earnings growth rate of 39.3% for 2019. The company’s shares have rallied 50.5% in a year.

Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 69.6% in the past year.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Tronox Limited (TROX) : Free Stock Analysis Report
 
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
 
Franco-Nevada Corporation (FNV) : Free Stock Analysis Report
 
Impala Platinum Holdings Ltd. (IMPUY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research