Cytec Industries Shares Jumped: 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 specialty chemical and materials company Cytec Industries (NYS: CYT) jumped 11% today after the company reported earnings.
So what: Revenue grew 11.1% to $778 million and easily beat analysts' estimate of $762.9 million. But the bottom line got investors really excited, where earnings per share of $1.10 crushed estimates of $0.81. Management also lowered earnings guidance for the full year to $3.20-$3.40 per share.
Now what: Normally lowering guidance like that would drown out a great earnings beat, but analysts were only expecting full-year earnings of $3.27, so the reduction was already priced in. The specialty chemicals industry is back in fashion as Chemtura (NYS: CHMT) and LyondellBassell (NYS: LYB) also popped today. I'm taking a wait-and-see approach on the jump and would like to see demand continue to improve before buying shares.
Interested in more info on Cytec Industries? Add it to your watchlist byclicking here.
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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