For Immediate Release
Chicago, IL – August 25, 2016 – Zacks Equity Research highlights Chemours Company (CC) as the Bull of the Day and Kirby Corporation (KEX) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on HP Inc. (HPQ).
Here is a synopsis of all three stocks:
The Chemours Company (CC) continues to focus on its Five-Point Transformation Plan. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 64% next year.
Chemours is a chemical company in the titanium technologies, fluoroproducts and chemical solutions areas. Its ingredients are found in plastics and coatings, refrigeration and air conditioning, mining and oil refining operations and general industrial manufacturing.
It was spun-off from DuPont (NYSE:DD) in 2015. The company has 35 manufacturing facilities around the globe.
Big Beat in the Second Quarter
On Aug 8, Chemours reported its second quarter results and beat the Zacks Consensus Estimate by 14 cents. EArnings were $0.27 compared to the $0.13 estimate.
Net sales fell 8% to $1.4 billion, but the company tightened its business model as part of the Five-Point Transformation Plan.
It sold its Sulfur business for $325 million and also announced the sale of its Clean and Disinfect business for $230 million.
Titanium Technologies sales fell 7% year over year, but it saw strong demand in North America and EMEA which was offset by weaker volumes in Asia and Latin America.
As part of the Transformation Plan, it is getting a better handle on the balance sheet. It reduced debt by $100 million year-to-date.
Estimates Rise for 2016 and 2017
Given the big beat and more upbeat outlook, the analysts raised both 2016 and 2017 earnings estimates.
The 2016 Zacks Consensus Estimate jumped to $0.77 from $0.63 over the last month.
The oil services recovery hasn't yet arrived for Kirby Corporation ( KEX). And now the marine segment has seen some weakness too. Full year earnings estimates for both 2016 and 2017 are being cut on this Zacks Rank #5 (Strong Sell).
Kirby is the largest domestic tank barge operator in the United States. It transports bulk liquid through the Mississippi River System, on the Gulf Intracoastal Waterway, along all three coasts of the United States and in Alaska and Hawaii.
It transports items that have seen tough days in recent months, including petrochemicals, black oil, refined petroleum products and agricultural chemicals.
It also operates offshore dry-bulk barge and tugboat units providing dry-bulk cargoes in the United States coastal trade.
It's second segment specializes in diesel engines, including after-market service for medium-speed and high speed diesel engines. It also services pump and manufactures and remanufactures oilfield service equipment, including pressure pumps.
Mixed Signals in the Second Quarter
On July 27, Kirby reported second quarter earnings and beat the Zacks Consensus by 2 cents.
Revenue fell to $441.6 million from $543.2 million in the year ago quarter.
Additional content:
HP (HPQ) Posts Q3 Earnings Beat, Down 4.5% on Weak Outlook
HP Inc. (HPQ) just released its third quarter fiscal 2016 earnings results, posting earnings of 48 cents and revenue of $11.9 billion.
Currently, HPQ has a Zacks Rank #3 (Hold). HPQ was down over 4.5% to $13.75 in after-hours trading shortly after its earnings report was released.
Beat earnings estimates . The company posted diluted net earnings of 48 cents per share, surpassing the Zacks Consensus Estimate of 45 cents per share.
Beat revenue estimates . The company saw revenue figures of $11.9 billion, edging past our consensus estimate of $11.397 billion but decreasing 4% year-over-year.
Personal Systems net revenue was flat year-over-year, with a 4.4% operating margin. Total units increased 4%; notebook units were up 12% and desktop units were down 6%. Printing net revenue declined 14% year-over-year, with a 20.4% operating margin.
HP returned $269 million to its shareholders through share repurchases and dividends.
“In Q3, we delivered on our financial commitments and continued to make solid progress in executing against our core, growth and future strategic framework,” said Dion Weisler, President and CEO, HP Inc. “Although the markets remain challenged, we have the innovation and executional rigor needed to continue to take profitable share and invest in the right opportunities to drive long-term success for the company.”
Looking ahead, HP estimates Q4 non-GAAP diluted net EPS to be in the range of 34 cents to 37 cents, and for fiscal 2016, the company is forecasting non-GAAP diluted net EPS to be in the range of $1.59 to $1.62.
Here’s a graph that looks at HP’s price, consensus, and EPS surprise:
HP INC Price, Consensus and EPS Surprise | HP INC Quote
HP Inc. is the surviving entity following the November 2015 split of Hewlett-Packard Company (NYSE:HPQ) into publicly traded entities - Hewlett Packard Enterprise Company and HP Inc. The company's focus will be on the PC and printing products and services. HP Inc. is headquartered in Palo Alto, California.
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CHEMOURS COMPNY (CC): Free Stock Analysis Report
KIRBY CORP (KEX): Free Stock Analysis Report
HP INC (HPQ): Free Stock Analysis Report
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