Kronos Worldwide (NYSE:KRO) Hits New 12-Month 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) shares hit a new 52-week low on Thursday after the company announced weaker than expected quarterly earnings. 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 firm had revenue of $494.40 million during the quarter, compared to analysts' expectations of $508.47 million. Kronos Worldwide had a return on equity of 8.04% and a net margin of 3.57%.

Kronos Worldwide Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Friday, September 5th will be given a dividend of $0.05 per share. The ex-dividend date is Friday, September 5th. This represents a $0.20 annualized dividend and a yield of 4.0%. Kronos Worldwide's payout ratio is 34.48%.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. The Goldman Sachs Group lowered their target price on Kronos Worldwide from $11.00 to $8.50 and set a "sell" rating on the stock in a research report on Wednesday, May 14th. Barclays lowered their price objective on Kronos Worldwide from $10.00 to $7.00 and set an "underweight" rating on the stock in a research report on Wednesday, May 28th. Finally, Wall Street Zen downgraded Kronos Worldwide from a "hold" rating to a "sell" rating in a research report on Saturday.

Institutional Investors Weigh In On Kronos Worldwide

Large investors have recently made changes to their positions in the company. KLP Kapitalforvaltning AS bought a new stake in Kronos Worldwide during the fourth quarter worth approximately $30,000. Vanguard Group Inc. lifted its holdings in Kronos Worldwide by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 2,217,961 shares of the specialty chemicals company's stock worth $21,625,000 after buying an additional 13,869 shares during the period. JPMorgan Chase & Co. lifted its holdings in Kronos Worldwide by 39.2% during the fourth quarter. JPMorgan Chase & Co. now owns 52,660 shares of the specialty chemicals company's stock worth $513,000 after buying an additional 14,833 shares during the period. Trexquant Investment LP purchased a new stake in Kronos Worldwide during the fourth quarter worth $104,000. Finally, Federated Hermes Inc. acquired a new position in shares of Kronos Worldwide during the fourth quarter worth $25,000. 15.11% of the stock is owned by institutional investors.

Kronos Worldwide Stock Performance

The business has a 50-day moving average price of $6.18 and a 200-day moving average price of $7.28. The firm has a market capitalization of $569.50 million, a price-to-earnings ratio of 8.52 and a beta of 1.09. The company has a quick ratio of 1.04, a current ratio of 2.79 and a debt-to-equity ratio of 0.59.

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.