TPC Group Shares Surged: 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 TPC Group (NAS: TPCG) jumped as much as 13% today after the company released a strong earnings report.

So what: Fourth-quarter revenue grew 18% to $575 million, mostly due to a 29% increase in prices. Net loss for the quarter was $18.4 million, or $1.18 per share -- a bad number, but it was only $0.02 less than estimates.

Now what: The market obviously wasn't expecting much and is likely looking past the fourth quarter to the company's 2012 outlook. Management said the weak demand experienced in the fourth quarter has abated and prices are moving higher. I would like to see this improvement hit the books instead of buying on a bad quarter, so keep an eye on how profits trend in the next few quarters.

Interested in more info on TPC Group? 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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