NYSE$TROX

Tronox Holdings PLC · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Tronox's adjusted EPS, free cash flow, and synergies exceeded guidance, driven by operating and commercial initiatives and margin benefits from vertical integration. The company increased its quarterly dividend by 56% and raised acquisition synergy targets.

Tronox reported Q4 2019 revenue of $693 million and income from operations of $44 million. GAAP diluted EPS was $0.00, with adjusted diluted EPS at $0.14. The company's performance was bolstered by strong execution on operating and commercial initiatives and margin benefits from vertical integration.

  • Revenue of $693 million
  • Income from operations of $44 million; Adjusted EBITDA of $156 million; Adjusted EBITDA margin of 23 percent
  • GAAP diluted EPS of $0.00; Adjusted diluted EPS of $0.14
  • Zircon continues to deliver strong profitability and margin enhancement despite softer market conditions as revenue up 4 percent versus third quarter 2019 driven by 7 percent sales volume increase partially offset by 3 percent lower selling prices

Headline financials

Total Revenue

$693M

Previous: $429M+61.5%
EPS (adj)

$0.14

Previous: $0.06+133.3%
Adjusted EBITDA

$156M

No prior period
Free Cash Flow

$214M

No prior period
Net Income

$0.00

Previous: -$5M+100.0%
Operating Income

$44M

Previous: $68M-35.3%
Cash & Equivalents

$302M

Previous: $1.03B-70.8%
Total Assets

$5.29B

Previous: $4.64B+14.0%

Revenue & EPS history

Tronox · Revenue · Quarterly

$693M

Q4 2019+61.5%vs Q4 2018
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Tronox · $615M total across 2 segments · Q4 2019

  • TiO2
    $544M
  • Zircon
    $71M

Forward guidance

Balancing global macro-economic uncertainty and near-term softness in zircon demand with the beginning of an uptick in the TiO2 sector and our confidence in our ability to deliver our increased synergy target, we are issuing the following outlook for 2020:

Tailwinds

  • Revenue of $3.0 – $3.3 billion
  • Adjusted EBITDA of $700 – $800 million (Non-GAAP)
  • Adjusted diluted EPS of $0.55 – $1.10 (Non-GAAP)
  • Capex of $260 – $290 million
  • Free Cash Flow over $200 million (Non-GAAP)

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 Q4 2019

Historical avgQ4 2019

-0.8%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+2.3%

Avg return

30 days after

49%

30 / 61 earnings

Positive

+33.8%

Q4 2016

Best reaction

-20.8%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.3%+4.3%-13.2%
Q4 2025-10.5%+3.6%+0.9%
Q3 2025-0.6%+9.1%+20.4%
Q1 2025+1.5%-1.8%+5.0%
Q4 2024-11.0%-18.4%-28.0%
Q3 2024-7.5%-9.9%-8.4%
Q2 2024-17.6%-16.8%-13.8%
Q1 2024+12.9%+10.2%+16.6%
Q4 2023+9.8%+12.7%+25.0%
Q3 2023+2.7%+0.5%+20.1%
Q2 2023-4.3%-10.0%-15.6%
Q1 2023-0.4%+7.1%-9.7%
Q4 2022-3.2%-2.9%-19.9%
Q3 2022-6.8%-11.0%+5.4%
Q2 2022-0.6%-4.3%-5.8%
Q1 2022-1.6%-4.6%+1.3%
Q4 2021-6.7%-9.9%-13.1%
Q3 2021-9.1%-5.6%-8.6%
Q2 2021+1.9%-3.0%+19.2%
Q1 2021+0.3%+1.0%+7.0%
Q4 2020-2.9%+7.0%-4.1%
Q3 2020+5.8%+17.1%+37.8%
Q2 2020-2.4%-1.0%+18.5%
Q1 2020-8.4%+3.5%+24.2%
Q4 2019-12.0%-16.7%-30.2%
Q3 2019+2.9%+6.4%+5.3%
Q2 2019-2.3%-6.4%-12.1%
Q1 2019-6.1%-9.3%-8.4%
Q4 2018+2.2%+1.4%+13.7%
Q3 2018+5.2%+3.4%-17.5%
Q2 2018-8.9%-7.7%-12.2%
Q1 2018+1.4%+0.1%+9.1%
Q4 2017+8.3%+9.4%+0.9%
Q3 2017+1.9%+3.5%-24.6%
Q2 2017-1.8%-1.5%+9.9%
Q1 2017-6.2%-4.3%-8.0%
Q4 2016+33.8%+20.7%+15.5%
Q3 2016+3.1%+17.2%+36.0%
Q2 2016+6.9%+19.1%+50.4%
Q1 2016-5.4%
Q4 2015+8.3%
Q3 2015-20.8%
Q2 2015+2.2%
Q1 2015-6.0%
Q4 2014-3.7%
Q3 2014+4.1%
Q2 2014+6.5%
Q1 2014-5.9%
Q4 2013+14.3%
Q3 2013+0.6%
Q2 2013+2.9%
Q1 2012+0.5%
Q1 2013+1.5%
Q4 2012+2.5%
Q3 2012-18.6%
Q2 2012-2.4%
Q4 2011+2.5%
Q3 2011-8.2%
Q2 2011+5.2%
Q1 2011+0.7%
Q4 2010+0.0%
Q3 2010
Q2 2010

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