U.S. Markets close in 54 mins

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

Zacks Equity Research

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.

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