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Kronos Worldwide Down to Strong Sell on Lackluster Q1 - Analyst Blog

Zacks Investment Research downgraded Kronos Worldwide, Inc.KRO to a Zacks Rank #5 (Strong Sell) on Jun 5, 2015. Going by the Zacks model, companies holding a Zacks Rank #5 have strong chances of performing worse than the broader market.

Why the Downgrade?

Kronos Worldwide's lackluster first-quarter 2015 results failed to impress investors, as evident from a roughly 8.6% fall in the company's share price since May 6. A snapshot of the quarter results will justify the resentment of investors. Earnings came in at 16 cents per share, in line with the Zacks Consensus Estimate.

Top-line performance was weak, with revenues declining 13.1% year over year. The fall was triggered by adverse impact from product pricing (11%), product mix (1%) and currency translations (8%).

In addition to a drop in share price, earnings estimates for Kronos Worldwide moved south since the earnings release. Over the last 30 days, the Zacks Consensus Estimate for the company has decreased 8.2% to 78 cents per share for 2015 and 6.7% to 98 cents per share for 2016.

Also, the company currently has an Earnings ESP of negative 1.28% for 2015 and negative 1.02% for 2016.

Stocks to Consider

Presently, Kronos Worldwide has a market capitalization of $1.4 billion. Better-ranked stocks in the industry include Celanese Corporation CE , LyondellBasell Industries N.V. LYB and Stepan Company SCL , each sporting a Zacks Rank #1 (Strong Buy).

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CELANESE CP-A (CE): Free Stock Analysis Report

KRONOS WORLDWD (KRO): Free Stock Analysis Report

LYONDELLBASEL-A (LYB): Free Stock Analysis Report

STEPAN CO (SCL): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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