CC - Why Shares of Chemours Plummeted This Week
While the overall dour sentiment pervading the market is driving the S&P 500 toward a decline of more than 5% this week, investors are especially pessimistic about Chemours (NYSE: CC) . As of 2:05 p.m. ET, shares of Chemours are down 20.7% since the market's close last Friday, according to data from S&P Global Market Intelligence .
Besides the overarching concerns about the economy, investors have overwhelmingly clicked the sell button with regard to shares of Chemours after the company lowered its 2022 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast on Wednesday. Some bearish attention from Wall Street, meanwhile, was an additional catalyst for the titanium stock's decline.
In a press release addressing its 2022 guidance, Chemours stated that it foresees a less profitable year than it had originally expected. In its second-quarter 2022 earnings presentation , management had projected 2022 adjusted EBITDA of $1.475 billion to $1.575 billion. Now, however, the company expects to generate adjusted EBITDA of $1.4 billion to $1.45 billion, a 7% decline at the midpoints of the ranges. While the bottom line may not be as robust as management had originally believed it would be, the midpoint of the new guidance is a 9% increase over that which the company reported in 2021.
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Why Shares of Chemours Plummeted This Week