Why Vulcan Materials Company's 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 construction materials provider Vulcan Materials Company jumped 10% today after the company reported earnings.
So what: Fourth-quarter revenue was up 14%, to $652.9 million, which easily topped the $620.7 million that analysts expected. On the bottom line, net income more than doubled, to $9.1 million, or $0.07 per share, $0.03 ahead of estimates.
Now what: Management was also bullish on 2014, saying that demand from building and infrastructure construction should be up this year. That bodes well for the coming year, but I'm still cautious, given the fact that Vulcan would have lost money last year if not for a tax benefit. While I'm not buying today, I'll watch how demand goes in early 2014 because Vulcan definitely has operating and financial leverage if demand does increase as management hopes.
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The article Why Vulcan Materials Company's Shares Popped Today originally appeared on Fool.com.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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