CC - Why Chemours Stock Is Plunging Today
2024-03-28 11:23:53 ET
Chemours (NYSE: CC) surpassed top- and bottom-line quarterly expectations, but investors are more focused on the drama going on behind the scenes. Shares of Chemours traded down 15% as of 10 a.m. ET after the chemicals company said it has received information requests from regulators and prosecutors related to its accounting.
Chemours, the maker of Teflon and other chemicals , reported fourth-quarter earnings of $0.31 per share on revenue of $1.4 billion, surpassing the $0.25 per share on sales of $1.32 billion consensus estimate. CEO Denise Dignam called 2023 a "challenging year" due to inventory destocking and economic headwinds, but investors were more focused on the ongoing probe into corporate accounting practices.
In February, Chemours launched an internal audit in response to a tip made to its ethics hotline. The company delayed fourth-quarter results and suspended key execs while it investigated the claims, eventually determining that executives delayed payments and sped collections to make sure cash-flow targets tied to bonus awards were met.
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Why Chemours Stock Is Plunging Today