LSB Industries 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 LSB Industries (NYS: LXU) rose 13% today after the company released fourth-quarter earnings.
So what: Revenue rose 25% during the quarter to $215.4 million and earnings per share rose from $0.79 to $1.19. The limited number of analysts who follow the stock had expected $195.1 million in revenue and $0.86 per share in earnings.
Now what: The chemical business was the driver in the fourth quarter, growing at 46%; management remains positive for more growth in 2012. For the full year 2011, the company earned $3.80 per share and with the stock's current price, investors can buy in at just 10.8 times trailing earnings. Considering the size of the earnings beat and the stock's value, I think that shares still have further to run in 2012.
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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.The Motley Fool owns shares of LSB Industries. 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.