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Kronos Worldwide (KRO) to Post Q4 Earnings: What's in the Cards?

Kronos Worldwide, Inc. KRO is expected to release fourth-quarter 2021 results on Mar 9.

The company beat the Zacks Consensus Estimate for earnings in two of the last four quarters while missed twice. It has a trailing four-quarter positive earnings surprise of 29.02%, on average. It posted a positive earnings surprise of 29.17% in the last reported quarter. The company’s fourth-quarter results are likely to have benefited from higher demand and selling prices of titanium dioxide (TiO2).

Shares of Kronos Worldwide are down 2.9% in the past year compared with 2% decline of the industry.

 


Image Source: Zacks Investment Research

 

Let’s see how things are shaping up for this announcement.

What do the Estimates Say?

The Zacks Consensus Estimate for fourth-quarter sales for Kronos Worldwide is currently pegged at $489.7 million, which suggests a rise of around 18% year over year.

Some Factors at Play

Kronos Worldwide is expected to have benefited from higher demand for TiO2 in the fourth quarter. The company, in its third-quarter call, said that it expects global demand for consumer products to remain strong, positively impacting sales and production volumes. It anticipates its sales and income from operations for full-year 2021 to be higher on a year-over-year basis.
 
The company is also likely to have gained from an uptick in selling prices. Its average TiO2 selling prices rose 11% on a year-over-year basis in the third quarter. Kronos Worldwide is expected to continue to have benefited from higher TiO2 selling prices in the fourth quarter on strong consumer demand. The benefits of higher prices are likely to reflect on its sales and margins in the quarter.

 

Kronos Worldwide Inc Price and EPS Surprise

 

Kronos Worldwide Inc price-eps-surprise | Kronos Worldwide Inc Quote

 

Zacks Model

Our proven model does not conclusively predict an earnings beat for Kronos Worldwide this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for Kronos Worldwide is 0.00%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 27 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Kronos Worldwide currently carries a Zacks Rank #3.

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:

Companhia Siderurgica Nacional SID, scheduled to release earnings on Mar 9, has an Earnings ESP of +3.57% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Companhia Siderurgica’s fourth-quarter earnings has been stable over the past 30 days. The consensus estimate for SID’s earnings for the quarter stands at 28 cents.

Seabridge Gold Inc. SA, expected to release earnings on Mar 23, has an Earnings ESP of +14.29% and carries a Zacks Rank #3.
 
The consensus estimate for Seabridge Gold’s fourth-quarter earnings has been stable in the past 30 days. The Zacks Consensus Estimate for SA’s fourth-quarter earnings is pegged at a loss of 4 cents.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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