Why Chemical Company Chemours Shares Are Plunging Premarket Today
Portfolio Pulse from Lekha Gupta
Chemours Company (NYSE:CC) shares dropped premarket after announcing the completion of an internal audit revealing delayed payments, accelerated receivables, and material weaknesses in financial reporting. Despite these issues, Q4 FY23 results exceeded expectations with net sales of $1.36 billion and adjusted EBITDA of $176 million. The company expects Q1 2024 net sales to be flat or slightly down and adjusted EBITDA to decrease by about 10%. Chemours also received court approval for a $592 million settlement of PFAS-related claims.
March 28, 2024 | 12:16 pm
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NEGATIVE IMPACT
Chemours shares dropped after an internal audit revealed financial discrepancies, but Q4 results were strong. Q1 2024 outlook is cautious.
The premarket drop in Chemours shares is directly related to the internal audit's findings of financial discrepancies, overshadowing the strong Q4 performance. The cautious Q1 2024 outlook further contributes to the negative short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Amplify ETF Trust Amplify Natural Resources Dividend Income ETF (NYSE:NDIV) may see indirect impact due to exposure to Chemours.
Given NDIV's exposure to Chemours, the ETF might experience an indirect negative impact due to the financial discrepancies and cautious outlook reported by Chemours.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
ProShares Smart Materials ETF (NYSE:TINT) could be indirectly affected by Chemours' recent financial audit findings.
TINT, having exposure to Chemours, might face an indirect negative impact due to the audit findings and the cautious financial outlook of Chemours.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50