Earnings Update: Here's Why Analysts Just Lifted Their Kronos Worldwide, Inc. (NYSE:KRO) Price Target To US$9.69

Investors in Kronos Worldwide, Inc. (NYSE:KRO) had a good week, as its shares rose 2.5% to close at US$9.44 following the release of its quarterly results. It was an okay report, and revenues came in at US$421m, approximately in line with analyst estimates leading up to the results announcement. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Kronos Worldwide

Taking into account the latest results, the current consensus, from the two analysts covering Kronos Worldwide, is for revenues of US$1.49b in 2020, which would reflect an uncomfortable 13% reduction in Kronos Worldwide's sales over the past 12 months. Before this earnings result, the analysts had predicted US$1.63b revenue in 2020, although there was no accompanying EPS estimate. The consensus seems a bit less optimistic overall, with the revenue forecasts following the latest results.

The average price target rose 5.4% to US$9.69, with the analysts clearly having become more optimistic about Kronos Worldwide'sprospects following these results.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast revenue decline of 13%, a significant reduction from annual growth of 5.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.6% next year. It's pretty clear that Kronos Worldwide's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for Kronos Worldwide next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

At least one of Kronos Worldwide's two analysts has provided estimates out to 2022, which can be seen for free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Kronos Worldwide (including 1 which is potentially serious) .

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