A month has gone by since the last earnings report for Chemours (CC). Shares have added about 8.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Chemours due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Chemours' Earnings and Revenues Surpass Estimates in Q3

Chemours recorded a loss of $27 million or 18 cents per share in third-quarter 2024. This against a profit of $12 million or 8 cents in the year-ago quarter. Barring one-time items, earnings were 40 cents. It topped the Zacks Consensus Estimate of 32 cents.

The company reported net sales of $1,501 million in the third quarter, up nearly 1% year over year. It beat the Zacks Consensus Estimate of $1,425.2 million. A 5% rise in volumes was partly offset by a 3% decline in price and a modest 1% currency headwind. Chemours saw record third-quarter sales in its Thermal & Specialized Solutions division, driven by the growth in Opteon refrigerants.

Segment Highlights

The Thermal & Specialized Solutions division recorded sales of $460 million for the quarter, reflecting a 6% rise compared to the previous year. This was above the consensus estimate of $437.9 million. This upside was driven by an 8% increase in volumes, partly offset by a 2% decline in prices.

In the Titanium Technologies segment, revenues fell 2% year over year to $679 million in the reported quarter. This was above the consensus estimate of $626.3 million. The downside was mainly due to a 2% decline in pricing, partly masked by a 1% increase in volumes.

Sales in the Advanced Performance Materials unit were $348 million, up 1% year over year. It beat the consensus estimate of $345.8 million. The uptick was driven by a 9% increase in volumes, partly offset by a 7% decline in pricing and a 1% currency headwind.

Financials

Chemours ended the quarter with cash and cash equivalents of $596 million, down around 1% sequentially. Long-term debt was $3,988 million, up roughly 1% from the prior quarter.

Cash provided by operating activities was $139 million compared with $131 million in the year-ago quarter.

Q4 Outlook

The company expects consolidated net sales to decline in the mid to high-single digits sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range compared with third-quarter 2024 results.

Chemours forecasts a sequential low-teens sales decline in the Thermal & Specialized Solutions unit in the fourth quarter due to refrigerant seasonality. It expects the segment to maintain double-digit year-over-year growth in Opteon. Adjusted EBITDA for the segment is forecast to decline in the low-20% range sequentially due to refrigerant seasonality

The company expects a mid-to-high-single-digit sequential sales decline in Titanium Technologies in the fourth quarter on seasonality-driven lower volumes. Adjusted EBITDA for the unit is forecast to decline between mid-to-high teens.

For Advanced Performance Materials, Chemours expects a low-single-digit sales decline in the fourth quarter due to macro weakness in advanced materials end markets, partly offset by gains in performance solutions. Adjusted EBITDA for the segment is forecast to be flat sequentially, supported by the favorable contribution from performance solutions sales and cost-reduction actions.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

VGM Scores

Currently, Chemours has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, Chemours has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Chemours belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Eastman Chemical (EMN), has gained 2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.

Eastman Chemical reported revenues of $2.46 billion in the last reported quarter, representing a year-over-year change of +8.7%. EPS of $2.26 for the same period compares with $1.47 a year ago.

For the current quarter, Eastman Chemical is expected to post earnings of $1.64 per share, indicating a change of +25.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.1% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Eastman Chemical. Also, the stock has a VGM Score of A.

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