Why Myers Industries Shares Popped 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 Myers Industries jumped as much as 12% today after the company reported second-quarter earnings.
So what: Sales jumped 13% to $204 million and net income was up 47% to $8.3 million, or $0.25 per share. Analysts were only expecting $198.1 million in revenue and $0.21 in earnings, so the results were much more than investors had hoped for.
Now what: The material handling business led results during the quarter, driven by the acquisition of Novel and Jamco. The lawn and garden segment was the weakest with a 4% decline in revenue; management said that it was going forward with an $8 million annual cost reduction plan in that business. All in all, the results were solid but the company needs to continue posting strong revenue after two earnings misses before we can call the results a trend.
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The article Why Myers Industries Shares Popped 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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