The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kronos Worldwide met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share shrank to a loss. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Kronos Worldwide reported revenue of $396.8 million. The four analysts polled by S&P Capital IQ expected to see a top line of $398.7 million on the same basis. GAAP reported sales were 9.3% lower than the prior-year quarter's $437.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.12. The two earnings estimates compiled by S&P Capital IQ averaged -$0.06 per share. Non-GAAP EPS were -$0.12 for Q4 against $0.74 per share for the prior-year quarter. GAAP EPS were -$0.16 for Q4 compared to $0.74 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.5%, much worse than the prior-year quarter. Operating margin was 0.7%, much worse than the prior-year quarter. Net margin was -4.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $459.1 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $1.90 billion. The average EPS estimate is $1.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 164 members out of 180 rating the stock outperform, and 16 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Kronos Worldwide a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kronos Worldwide is hold, with an average price target of $15.67.
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