Why Is Kronos Worldwide (KRO) Up 5.6% Since Last Earnings Report?

Earnings Performance - Kronos Worldwide reported Q2 2024 earnings of 17 cents per share, compared to a loss of 7 cents per share in the same quarter last year, but missed the Zacks Consensus Estimate of 21 cents [2] - Net sales increased by approximately 12.9% year over year to $500.5 million, driven by higher sales volumes due to stronger demand for TiO2, although it missed the Zacks Consensus Estimate of$504.2 million [3] Production and Sales Volumes - TiO2 production volumes rose by 53.9% year over year to 137 thousand metric tons in Q2 [4] - TiO2 sales volumes increased by 28.8% to 134 thousand metric tons during the same period [4] - TiO2 segment profit was $41.1 million, a significant improvement from a segment loss of$2.3 million a year ago, primarily due to increased sales and production volumes [4] Financial Position - At the end of the quarter, Kronos had cash and cash equivalents of $133.8 million, a decrease of roughly 22$423.7 million [5] Future Outlook - The company anticipates continued improvement in demand for 2024, with expected sales volumes higher than in 2023 [6] - Kronos has increased production rates in response to current and anticipated demand, expecting these rates to remain elevated for the remainder of 2024 [6] - The company has implemented TiO2 price hikes that need to be sustained to achieve historical margin levels [6] Estimate Trends - In the past month, there has been a downward trend in fresh estimates for Kronos, with the consensus estimate shifting down by 6.8% [7] - Despite the downward estimate revisions, Kronos holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [10] Industry Comparison - Kronos Worldwide is part of the Zacks Chemical - Diversified industry, where Eastman Chemical has seen a 2.7% gain over the past month [11] - Eastman Chemical reported revenues of $2.36 billion for the last quarter, reflecting a year-over-year change of +1.7% [11]