NYSE$KRO

Kronos Worldwide Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported net income decrease due to lower income from operations resulting from lower sales volumes and lower average TiO2 selling prices, partially offset by lower production costs.

Kronos Worldwide reported a decrease in net income for Q3 2020, with net income at $8.1 million, or $0.07 per share, compared to $17.9 million, or $0.16 per share, in Q3 2019. The decrease was primarily due to lower sales volumes and lower average TiO2 selling prices, partially offset by lower production costs.

  • Net income decreased to $8.1 million, or $0.07 per share, compared to $17.9 million, or $0.16 per share, in the third quarter 2019.
  • Net sales were $416.9 million, a decrease of 5% compared to Q3 2019.
  • TiO2 sales volumes decreased by 6% compared to the same quarter last year.
  • Average TiO2 selling prices were 4% lower compared to Q3 2019.

Headline financials

Total Revenue

$417M

Previous: $437M-4.7%
EPS (adj)

$0.07

Previous: $0.16-56.3%
Capital Expenditures

-$38.3M

Previous: -$34.2M-12.0%
Free Cash Flow

-$30.2M

Previous: -$16.3M-85.3%
Net Income

$8.1M

Previous: $17.9M-54.7%
Operating Income

$19.3M

Previous: $33.1M-41.7%
Gross Profit

$80.6M

Previous: $87.7M-8.1%
Cash & Equivalents

$348M

Previous: $386M-9.7%
Total Assets

$1.95B

Previous: $1.88B+3.3%

Revenue & EPS history

Kronos · Revenue · Quarterly

$417M

Q3 2020-4.7%vs Q3 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Kronos · $417M total across 1 segment · Q3 2020

  • TiO2
    $417M

Forward guidance

The extent of the COVID-19 impact on our future operations will depend on the time period and degree to which the COVID-19 pandemic persists in the global economy thereby reducing customer demand for certain of our products, including the timing and extent to which our customers’ operations continue to be impacted, our customers’ perception as to when consumer demand for their products will return to pre-pandemic levels and on any future disruptions in our operations or our suppliers’ operations, all of which are difficult to predict.

Headwinds

  • Future supply and demand for our products
  • The extent of the dependence of certain of our businesses on certain market sectors
  • The cyclicality of our business
  • Customer and producer inventory levels
  • Unexpected or earlier-than-expected industry capacity expansion

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-1.2%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+4.7%

Avg return

30 days after

44%

27 / 62 earnings

Positive

+19.7%

Q3 2016

Best reaction

-19.8%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%-5.9%-17.6%
Q4 2025-3.3%-4.8%+20.3%
Q3 2025-7.0%+2.5%+0.2%
Q1 2025-2.0%+4.0%-10.1%
Q3 2024+4.6%-1.9%-12.9%
Q2 2024+0.5%+2.4%+2.7%
Q1 2024+4.1%+2.5%+9.4%
Q4 2023+15.7%+26.3%+38.9%
Q3 2023+14.5%+7.0%+31.5%
Q2 2023-6.9%-1.9%-10.1%
Q1 2023-8.9%-8.0%-3.5%
Q4 2022-13.2%-17.8%-18.1%
Q3 2022-7.9%-0.5%-3.3%
Q2 2022-6.2%-12.1%-27.4%
Q1 2022+1.2%-0.8%+21.6%
Q4 2021+8.6%+11.2%+11.6%
Q3 2021+4.3%+2.8%+3.2%
Q2 2021-6.3%-5.3%-6.7%
Q1 2021-0.1%-1.5%-7.1%
Q4 2020+1.1%-2.8%+4.9%
Q3 2020-0.4%+1.1%+8.1%
Q2 2020+5.4%+10.8%+11.9%
Q1 2020-5.6%+2.4%+20.5%
Q4 2019-12.6%-7.6%+16.0%
Q3 2019+7.6%+8.7%+2.3%
Q2 2019-5.8%-11.3%-4.8%
Q1 2019+2.4%+1.0%+8.5%
Q4 2018-4.8%-5.9%-2.9%
Q3 2018-15.2%-16.2%-26.6%
Q2 2018-0.3%-4.9%-11.8%
Q1 2018-6.0%-1.8%+4.5%
Q4 2017+0.0%-1.7%-3.9%
Q3 2017+0.5%+3.2%-3.0%
Q2 2017-11.5%-7.9%-0.9%
Q1 2017+7.8%+12.7%+8.4%
Q4 2016+7.1%+10.2%+16.7%
Q3 2016+19.7%+38.0%+57.0%
Q2 2016+12.5%+15.4%+51.0%
Q1 2016-3.0%
Q4 2015-2.3%
Q3 2015-14.4%
Q2 2015-19.8%
Q1 2015-9.4%
Q4 2014+7.8%
Q3 2014-0.9%
Q2 2014-0.7%
Q1 2014-4.7%
Q4 2013+8.0%
Q3 2013+2.1%
Q2 2013-2.5%
Q1 2013-3.0%
Q4 2012-2.1%
Q3 2012+2.1%
Q2 2012+4.4%
Q1 2012-11.1%
Q4 2011+0.8%
Q3 2011+2.7%
Q2 2011-19.2%
Q1 2011-4.7%
Q4 2010+3.6%
Q2 2010+7.8%
Q1 2010-5.2%

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