Why Chemours Plunged Today

Chemours delivered mixed results, but investors were expecting more.Shares of European chemicals company Chemours (CC 16.51%) fell 16.8% on Friday, as of 2:46 p.m. EDT. The chemicals giant reported lackluster earnings today and also provided guidance that merely met the analyst consensus. Thus, it's no surprise the stock found itself in the red after having doubled since late November. Still, opportunity may lurk one of Chemours' all-star up-and-coming products. ExpandNYSE: CCChemoursToday's Change(-16.51%) $-3.37Current Price$17.04Key Data PointsMarket Cap$3.1BDay's Range$16.15 - $20.2252wk Range$9.13 - $21.85Volume11MAvg Vol2.8MGross Margin17.39%Dividend Yield2.51% Chemours delivers mixed results In the fourth quarter, Chemours delivered a 2.2% revenue decline, which was in line with Wall Street's expectations, while adjusted (non-GAAP) earnings per share fell 46% to $0.05, missing expectations by $0.02. For the year ahead, Chemours forecasts 3% to 5% revenue growth, which would result in $5.98 billion to $6.10 billion in 2026 revenue, with the midpoint basically in line with consensus estimates. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is projected between $800 million and $900 million, which would mark a solid 14.6% increase at the midpoint over 2025's $742 million EBITDA figure. 2025 EBITDA was negatively affected by a one-time inventory charge in the company's Advanced Performance Materials segment, which is experiencing "short-term cyclical end market headwinds," according to the company. Image source: Getty Images. Watch the high-growth refrigerants segment While Chemours seems like a relatively low-growth cyclical, and therefore an unexciting investment, its largest segment did show some growth last year: its Opteon low-carbon refrigerants. These new patented refrigerants have been shipping to HVAC equipment manufacturers over the last few years, and growth is ramping quickly as older refrigerants are being phased out by regulations over the next 10 years. Last year, Opteon grew 56%, boosting the entire Thermal Solutions segment by 13% and that segment's EBITDA by 18%. Opteon sales accounted for 22% of Chemours' total sales last year, so if the other cyclical segments recover and Opteon becomes a larger part of Chemours' business, there could be better times ahead. Value investors may therefore want to investigate this industrial stock on the pullback. Read NextFeb 18, 2025 •By Motley Fool TranscribingChemours (CC) Q4 2024 Earnings Call TranscriptNov 4, 2024 •By Motley Fool TranscribingChemours (CC) Q3 2024 Earnings Call TranscriptAug 2, 2024 •By Motley Fool TranscribingChemours (CC) Q2 2024 Earnings Call TranscriptApr 1, 2024 •By Motley Fool TranscribingChemours (CC) Q4 2023 Earnings Call TranscriptMar 28, 2024 •By Lou WhitemanWhy Chemours Stock Is Plunging TodayOct 27, 2023 •By Motley Fool TranscribingChemours (CC) Q3 2023 Earnings Call TranscriptAbout the AuthorBilly Duberstein is a contributing Motley Fool technology analyst covering semiconductors, hardware, software, and AI, as well as consumer goods. Billy loves looking at the story behind investments from an interdisciplinary point of view, with an equal appetite for high-growth disruptors and beaten-down value names. He is also CEO of Stone Oak Capital, a registered investment adviser in California. He previously worked as a technology analyst for several hedge funds and as a research assistant at Wedbush Securities. Billy holds an MBA in finance from New York University and a bachelor’s degree in music from the University of Virginia.TMFStoneOakStocks MentionedChemoursNYSE: CC$17.04 (16.51%) $3.37*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.