Kronos Worldwide (NYSE:KRO) Reaches New 1-Year Low After Earnings Miss

Key Points

• Kronos Worldwide shares reached a new 52-week low at $4.70 following a disappointing earnings report, with EPS at ($0.08) compared to the expected $0.13.
• Despite recent struggles, Kronos Worldwide announced a $0.05 quarterly dividend, indicating a yield of 4.2% on an annualized basis.
• Wall Street analysts have revised their outlook, with Barclays and Goldman Sachs both lowering their price targets to $7.00 and $8.50, respectively, highlighting a cautious sentiment toward the stock.

Kronos Worldwide Inc (NYSE:KRO - Get Free Report) hit a new 52-week low during mid-day trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $4.70 and last traded at $4.85, with a volume of 205969 shares traded. The stock had previously closed at $5.42.

The specialty chemicals company reported ($0.08) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.13 by ($0.21). The business had revenue of $494.40 million during the quarter, compared to analyst estimates of $508.47 million. Kronos Worldwide had a net margin of 3.57% and a return on equity of 8.04%.

Kronos Worldwide Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Friday, September 5th will be issued a $0.05 dividend. The ex-dividend date is Friday, September 5th. This represents a $0.20 annualized dividend and a dividend yield of 4.1%. Kronos Worldwide's dividend payout ratio is presently 24.10%.

Analysts Set New Price Targets

Several equities research analysts recently commented on KRO shares. Barclays cut their price target on shares of Kronos Worldwide from $10.00 to $7.00 and set an "underweight" rating on the stock in a research note on Wednesday, May 28th. Wall Street Zen cut Kronos Worldwide from a "buy" rating to a "hold" rating in a research report on Thursday, May 15th. Finally, The Goldman Sachs Group decreased their target price on Kronos Worldwide from $11.00 to $8.50 and set a "sell" rating for the company in a research report on Wednesday, May 14th.

Hedge Funds Weigh In On Kronos Worldwide

Institutional investors have recently modified their holdings of the business. State of Wyoming grew its position in Kronos Worldwide by 28.1% during the 4th quarter. State of Wyoming now owns 5,031 shares of the specialty chemicals company's stock worth $49,000 after purchasing an additional 1,105 shares during the last quarter. Jacobs Levy Equity Management Inc. boosted its stake in shares of Kronos Worldwide by 0.4% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 315,992 shares of the specialty chemicals company's stock worth $3,081,000 after buying an additional 1,130 shares during the period. Aquatic Capital Management LLC grew its holdings in shares of Kronos Worldwide by 144.8% during the fourth quarter. Aquatic Capital Management LLC now owns 3,183 shares of the specialty chemicals company's stock worth $31,000 after buying an additional 1,883 shares during the last quarter. Federated Hermes Inc. acquired a new position in Kronos Worldwide in the 4th quarter valued at about $25,000. Finally, Teacher Retirement System of Texas increased its position in Kronos Worldwide by 4.1% in the 2nd quarter. Teacher Retirement System of Texas now owns 69,020 shares of the specialty chemicals company's stock valued at $428,000 after acquiring an additional 2,744 shares during the period. 15.11% of the stock is owned by institutional investors and hedge funds.

Kronos Worldwide Trading Down 2.5%

The company has a 50 day simple moving average of $6.18 and a 200 day simple moving average of $7.31. The company has a current ratio of 2.79, a quick ratio of 0.99 and a debt-to-equity ratio of 0.59. The stock has a market capitalization of $559.67 million, a PE ratio of 8.39 and a beta of 1.09.

About Kronos Worldwide

Kronos Worldwide, Inc produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally. The company produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for various products, including paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, foods, and cosmetics.