The 10-second takeaway
For the quarter ended March 31 (Q1), Kronos Worldwide beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Kronos Worldwide logged revenue of $463.6 million. The three analysts polled by S&P Capital IQ looked for a top line of $449.2 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $561.3 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 -$0.35. The three earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS were -$0.35 for Q1 compared to $1.18 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 0.8%, much worse than the prior-year quarter. Operating margin was -10.5%, much worse than the prior-year quarter. Net margin was -8.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $511.5 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $1.88 billion. The average EPS estimate is $0.84.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 159 members out of 174 rating the stock outperform, and 15 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 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 $17.50.
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