Why Shares of Aceto Corporation Jumped Today
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 pharmaceutical distributor Aceto Corporation jumped 21% today after reporting earnings.
So what: Net sales jumped 15.7%, to $129.3 million, and net income jumped 135.2% from a year ago to a record $11.3 million. On a per-share level, the company made $0.40, which was well above the $0.25 estimate from analysts.
Now what: Pharmaceuticals continue to be a strong business for the company, with sales up 19%. The company's growth, along with the fact that it crushed earnings estimates, shows some real value in its shares, as well. Estimates for 2014 are for $1.03 per share before this beat, so at 11.5 times estimates, that will likely rise. I think there's value to be had. I also think that shares will continue to rise as profits improve, making today a buying opportunity despite the pop.
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The article Why Shares of Aceto Corporation Jumped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.
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