Zacks Investment Research downgraded
) to a Zacks Rank #5 (Strong Sell) on Jan 8, 2014.
Why the Downgrade?
Tronox Limited's third quarter 2013 results were disappointing.
The company reported a loss per share of 48 cents versus net
earnings of 20 cents per share in the year-ago quarter. Also, the
loss exceeded the Zacks Consensus Estimate of a loss of 14 cents
Sales came in at $491 million, up just 0.8% over the year-ago
quarter. Gains in the Pigment segment were offset by weak
performance of the company's Mineral Sands and Corporate and
Other segments. The negative impact from Eliminations was lower
in the quarter compared to the year-ago quarter.
With respect to costs/margins of Tronox Limited, an increase of
21.3% was recorded in cost of sales that led to a 15.8% fall in
Tronox Limited's poor performance in the quarter triggered a
downward revision in earnings estimates. In the last 60 days, the
Zacks Consensus Estimate has slipped from earnings of 23 cents
per share to a loss of 30 cents per share for 2014. The negative
earnings surprise of 136.7% in the last four quarters along with
the Zacks Consensus Estimate slipping into a loss for 2014 raises
concerns over the company's performance in the forthcoming
Other Stocks to Consider
Tronox Limited is a $2.6 billion company producing and marketing
titanium ore and titanium dioxide in the Americas, Europe and the
Asia-Pacific. Some better-ranked stocks in the chemical specialty
HB Fuller Co.
Globe Specialty Metals, Inc.
). All these companies carry a Zacks Rank #2 (Buy).
CHEMTURA CORP (CHMT): Free Stock Analysis
FULLER(HB) CO (FUL): Free Stock Analysis
GLOBE SPECIALTY (GSM): Free Stock Analysis
TRONOX LTD (TROX): Free Stock Analysis Report
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