Kronos Worldwide, Inc. (KRO) Earnings: An Early Look

Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Kronos Worldwide, Inc. (NYSE:KRO) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed, knee-jerk reaction to news that turns out to be exactly the wrong move.

As a specialty chemical maker, Kronos Worldwide, Inc. (NYSE:KRO) is highly sensitive to the price of a single specialized pigment. Will the recovery in the housing market help boost demand for the company’s products? Let’s take an early look at what’s been happening with Kronos Worldwide, Inc. (NYSE:KRO) over the past quarter and what we’re likely to see in its quarterly report on Wednesday.

Stats on Kronos

Analyst EPS Estimate ($0.05)
Year-Ago EPS $0.74
Revenue Estimate $397.8 million
Change From Year-Ago Revenue (9.1%)
Earnings Beats in Past 4 Quarters 4

Source: Yahoo! Finance.

Will Kronos look more colorful this quarter?
Analysts have gotten more pessimistic about Kronos Worldwide, Inc. (NYSE:KRO) in recent months, worsening their consensus loss estimate for the just-ended quarter by $0.03 per share and lopping nearly $0.30 per share off their 2013 full-year projections. Still, investors haven’t been that dour in their views, with the stock having risen more than 10% since early December.

E I Du Pont De Nemours And Co (NYSE:DD)Kronos Worldwide, Inc. (NYSE:KRO) is one of a select group of chemical companies that make titanium dioxide, a pigment used in paint and other coatings. E I Du Pont De Nemours And Co (NYSE:DD) is the leader in world TiO2 production, but Kronos is among the top producers as well.

But times have been tough lately for Kronos Worldwide, Inc. (NYSE:KRO), as high prices for TiO2 have sapped demand. Sherwin-Williams Company (NYSE:SHW) and other paint manufacturers put off purchases and started developing alternatives to TiO2 to try to boost their profits and, as a result, both Kronos and rival Huntsman Corporation (NYSE:HUN) said last year that margins would see pressure from falling TiO2 prices.

The question for Kronos going forward is whether a recovery in housing will boost paint demand and therefore improve the TiO2 pricing situation. Many companies in housing-related industries have already seen impressive gains due to the rebound, and Kronos could definitely benefit from better conditions in its key market.

In its quarterly results, watch for Kronos Worldwide, Inc. (NYSE:KRO) to discuss whether its February price increase has started to reverse the troubling trend of weak TiO2 pricing. With the company having raised its prices for titanium dioxide products by about $200 to $250 per metric ton, Kronos could see at least some of its profits restored in future quarters.

The article Kronos Earnings: An Early Look originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Sherwin-Williams.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!