Why Huntsman Shares Popped
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 specialty chemicals maker Huntsman (NYS: HUN) climbed 12% today after its quarterly results breezed past Wall Street expectations.
So what: Huntsman's first-quarter beat was so wide -- adjusted EPS of $0.74 versus the consensus of just $0.40 -- that investors have no choice but to raise their growth estimates. In fact, revenue rose 9% to $2.91 billion on solid demand across several of its markets, suggesting that the macroeconomic winds are starting to turn in its favor.
Now what: Don't expect the operating momentum to wane anytime soon. "Notwithstanding certain economic challenges in various parts of the world, I am most optimistic about our earnings potential," CEO Peter Huntsman said in a statement. While buying into a double-digit rally isn't exactly ideal, Huntsman's still-paltry forward P/E leaves plenty of upside to work with.
Interested in more info onHuntsman?Add it to your watchlist.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.