Huntsman Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of chemical maker Huntsman (NYS: HUN) jumped 13% today after the company's third-quarter earnings beat expectations.
So what: Higher prices helped Huntsman's revenue jump 24% to $2.98 billion despite a slight drop in demand. Adjusted earnings per share reached $0.45, $0.02 ahead of estimates despite a $17 million hit from a strong Swiss franc.
Now what: CEO Peter Huntsman has a bullish view on the future of the U.S. economy, and his optimism might have helped goose the shares. I wouldn't be too concerned about the drop in volume as customers lower inventory due to uncertain demand and higher prices. I think chemical makers sit in a strong position since most have been able to raise prices, which will lead to more profit in the long run.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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