Chemours Posts Mixed Q4 Results, Shares Plunge 6%

Shares of Chemours (NYSE: CC) were down over 6% in the extended trading hours on February 10, after the American chemical company reported mixed Q4 results.

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Q4 Numbers

In Q4, adjusted earnings of $0.81 per share fell short of the consensus estimate of $0.93 per share. However, it compares favorably with $0.61 per share reported for the same quarter last year.

Positively, however, net sales jumped 18% year-over-year to $1.6 billion and exceeded consensus estimates of $1.57 billion.

FY2022 Outlook

Based on expectations of continued economic recovery and normalization of supply chains challenges early in 2022, management provided the financial guidance for FY2022.

The company forecasts adjusted earnings in the range of $4.07 to $4.70 per share, while the consensus estimate is pegged at $4.54 per share. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are forecast to be in the range of $1.3 billion to $1.425 billion.

CEO Comments

Chemours CEO, Mark Newman, commented, “Building on a firm foundation, I am excited to lead us into the next chapter of our company – ‘Chemours 2.0’ – as we look to realize the full potential of our businesses. I look forward to beginning this journey by engaging even more deeply with all of our stakeholders in early 2022.”

Wall Street’s Take

Following the Q4 results, Alembic Global analyst Hassan Ahmed reiterated a Buy rating on the stock with a price target of $46 (29.69% upside potential).

Overall, the stock has a Moderate Buy consensus rating based on 4 Buys and 3 Holds. The average Chemours Company stock forecast of $43.14 implies 21.6% upside potential from current levels.

TipRanks’ Smart Score

Chemours scored an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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