The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Kronos Worldwide missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Kronos Worldwide booked revenue of $472.9 million. The four analysts polled by S&P Capital IQ looked for a top line of $483.2 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $548.0 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 $0.30. The four earnings estimates compiled by S&P Capital IQ anticipated $0.26 per share. GAAP EPS of $0.30 for Q3 were 59% lower than the prior-year quarter's $0.74 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.2%, 2,030 basis points worse than the prior-year quarter. Operating margin was 8.4%, 2,050 basis points worse than the prior-year quarter. Net margin was 7.4%, 830 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $415.2 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $2.07.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 175 members out of 191 rating the stock outperform, and 16 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Kronos Worldwide a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kronos Worldwide is outperform, with an average price target of $25.33.
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