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What: Shares of chemicals maker Chemtura (NYS: CHMT) jumped 10% this morning after it announced earnings last night.
So what: Revenue was down just a bit in the fourth quarter to $677 million, but earnings were stronger than expected. For the quarter, the company made $26 million on a managed basis, which is $0.26 per share, and analysts had expected earnings per share of just $0.11.
Now what: Despite weak demand in the electronics market, the company was able to deliver strong results in the quarter. Based on management comments, 2012 should be slightly better, but expecting a jump in demand isn't realistic. Shares are trading at 15.6 times expected earnings in 2012, and if the economy improves throughout the year, Chemtura could capitalize and outperform those expectations again.
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At the time thisarticle 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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