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NEW YORK - NL Industries, Inc. (NYSE:NL) reported fourth-quarter earnings that surpassed analyst expectations, but its stock fell 4.3% following the release. The company posted adjusted earnings per share of $0.34, beating the consensus estimate of $0.21.
Revenue for the quarter came in at $38.4 million, down 11.1% from $43.2 million in the same period last year. The decline was primarily due to lower Security Products sales to a government security customer, partially offset by higher Marine Components sales to the towboat and government markets.
NL Industries reported net income attributable to stockholders of $16.5 million for the fourth quarter, compared to $7.6 million in the year-ago period. The results included an unrealized loss of $12 million related to the change in value of marketable equity securities.
"Our fourth quarter results demonstrate resilience in a challenging market environment," said CEO Robert Graham. "While revenue declined year-over-year, we were able to exceed earnings expectations through cost management and strength in certain segments."
The company’s subsidiary, CompX International, saw its segment profit decrease to $4.9 million from $7.4 million in the fourth quarter of 2023, primarily due to lower sales and a lower gross margin percentage at Security Products.
NL Industries’ equity in losses of Kronos Worldwide (NYSE:KRO), in which it holds a significant stake, was $4 million in the fourth quarter, compared to losses of $1.6 million in the same period last year.
Despite beating earnings estimates, the 4.3% drop in NL Industries’ stock price suggests investors may have been focusing on the revenue decline and increased losses from its Kronos investment.
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