The chart below shows how CC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CC sees a +0.21% change in stock price 10 days leading up to the earnings, and a -4.69% change 10 days following the report. On the earnings day itself, the stock moves by +1.80%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Beat Expectations: Chemours Company beat earnings expectations with reported EPS of $0.11, exceeding the expected $0.10.
Quarterly Sales Record: The TSS business achieved a quarterly sales record, driven by a 23% year-over-year growth in Opteon Refrigerants, supported by regulatory transitions in the US and EU.
Cost Savings Achievement: The TT Transformation Plan yielded approximately $140 million in annual savings, exceeding the initial target of $125 million, contributing to a net increase in adjusted EBITDA margins.
Internal Control Remediation: The company fully remediated four material weaknesses in internal control, marking a significant milestone in their operational integrity.
Leadership Team Enhancement: The appointment of Damian Gumpel as President of Chemours’ TT Business and Diane Picho as Chief Enterprise Enablement Officer strengthens the leadership team and supports strategic execution.
Cost Savings Initiative: Chemours is on track to deliver $250 million in run rate cost savings by the end of 2025, with half of this target expected from the TT Transformation Plan.
Teflon PFA Production Growth: The high purity Teflon PFA resin production line for semiconductor customers is ramping up successfully, indicating growth potential in this market.
Opteon Refrigerants Growth Outlook: The company anticipates continued double-digit growth in Opteon Refrigerants throughout 2025, driven by regulatory demand and market transitions.
Projected EBITDA Improvement: Chemours expects improved overall results for 2025 compared to 2024, with a projected adjusted EBITDA range of $825 million to $975 million, depending on macroeconomic conditions.
Negative
Q4 Sales Decline: Consolidated net sales for Q4 2024 were approximately $1.4 billion, down 1% compared to the prior year quarter, driven by a 3% decline in pricing.
Net Sales Decline: Consolidated net sales for the full year 2024 were approximately $5.8 billion, down 5% compared to the prior year, primarily due to a 4% pricing decrease.
Adjusted EBITDA Decline: Adjusted EBITDA for the full year decreased to $786 million from $1 billion in the prior year, primarily driven by pricing decreases across all businesses and higher costs in TSS and corporate expenses.
Net Loss Comparison: Chemours reported a net loss of $8 million for Q4 2024, compared to a net loss of $18 million in the prior year, indicating ongoing financial challenges despite a slight improvement.
Net Income Decline: Consolidated adjusted net income for Q4 2024 was $16 million, down from $46 million in the prior year quarter, largely due to favorable tax impacts in the previous year.
APM Segment Sales Decline: APM segment sales were softer than anticipated due to weaker conditions in economically sensitive end markets and lower demand for Nafion membranes, negatively impacting performance solutions.
Increased Corporate Expenses: Corporate expenses increased by $20 million in Q4 2024 compared to the prior year, driven by changes in reserves related to legacy asbestos matters.
Cash Flow Decline: The company experienced a significant decline in cash provided by operating activities, down to $138 million from $482 million in the same quarter last year, reflecting operational challenges.
Cash Flow Challenges: For the full year, Chemours had outflows of operating cash of $633 million compared to inflows of $556 million in the prior year, indicating cash flow issues.
APM Segment EBITDA Decline: The APM segment reported a 41% decrease in adjusted EBITDA for the full year, primarily due to pricing decreases and lower sales volumes.
The Chemours Company (NYSE:CC) Q4 2024 Earnings Call Transcript
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