Tronox Holdings plc TROX recorded net income from continuing operations (attributable to the company) of breakeven per share in fourth-quarter 2019 against a net loss of 5 cents per share a year ago.
The bottom line in the reported quarter include an inventory step-up charge, transaction costs, restructuring and integration costs, loss on extinguishment of debt, a gain on pension settlement and a charge for a capital gains tax payment.
Barring one-time items, adjusted earnings per share (EPS) for the reported quarter were 14 cents, in line with the Zacks Consensus Estimate.
Revenues jumped around 62% year over year to $693 million in the reported quarter. The upside can be attributed to higher year over year titanium dioxide (TiO2) pigment sales. However, revenues missed the Zacks Consensus Estimate of $723.7 million.
Revenues (on a reported basis) from TiO2 pigment climbed 116% year over year to $544 million in the quarter. Sales included contributions from the acquired operations of Cristal.
Zircon sales declined 13% to $71 million due to weak market conditions.
Feedstock and other products’ sales fell around 18% to $78 million.
Loss (as reported) from continuing operations for 2019 was 81 cents per share, compared with a loss of 6 cents per share a year ago. Adjusted earnings were 47 cents per share for the year.
Revenues were $2,642 million for the full year, up around 45% year over year.
The company ended 2019 with cash and cash equivalents of $302 million, down around 71% year over year. Long-term debt was $2,988 million, down around 5% year over year.
Cash provided by operating activities was $412 million for 2019, up from $170 million in 2018.
The company returned around $315 million to shareholders through share buybacks and dividend payments in 2019. It has also raised its quarterly dividend by 56%.
The company expects revenues of $3-3.3 billion for 2020. It also anticipates adjusted EBITDA of $700-$800 million for the year.
Tronox also projects adjusted EPS in the range of 55 cents to $1.10 for 2020. The company also expects adjusted free cash flow of more than $200 million for the year.
Shares of Tronox have lost 34.6% over a year, compared with the industry’s 32.1% decline.
Zacks Rank & Stocks to Consider
Tronox currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space include Daqo New Energy Corp. DQ, NovaGold Resources Inc. NG and Commercial Metals Company CMC.
Daqo New Energy has projected earnings growth rate of 353.7% for 2020 and sports a Zacks Rank #1 (Strong Buy). The company’s shares have rallied roughly 93% in a year’s time. You can see the complete list of today’s Zacks #1 Rank stocks here.
NovaGold has projected earnings growth rate of 11.1% for the current fiscal and carries a Zacks Rank #2 (Buy). The company’s shares have surged around 131% over a year.
Commercial Metals has estimated earnings growth rate of 20.7% for the current fiscal and carries a Zacks Rank #2. The company’s shares have shot up roughly 16% in a year’s time.
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