Image source: Getty Images.
What happened
Shares of metal and specialty products producer Ferroglobe PLC (GSM -0.39%) jumped as much as 19.2% in early trading Wednesday after giving an earnings update to investors. By 11:45 p.m. EST shares had settled down slightly to a 13.8% gain for the day.
So what
Management said market conditions stabilized in the fourth quarter and estimates revenue will be $400 million to $405 million while net loss will be $37 million to $51 million. By comparison, analysts were only expecting revenue of $385 million in the quarter.
The company has also agreed to sell its Spanish hydro-electric assets for $270 million in gross proceeds. It may also sell its hydro-electric operations in France.
In a separate release, management announced that it has launched an offering of $350 million in Senior Notes due 2022. Pricing isn't set yet but the funds are expected to be used to reduce debt and pay expenses owed to the company's former Executive Chairman.
Now what
It looks like Ferroglobe's future is a little brighter on Wednesday than investors expected and the good news isn't completely seen in fourth-quarter results. Rising prices for the company's products won't fully hit until later this year when contracts run out and pricing adjusts. When it does the hope is that the company will be able to quickly increase profitability. For now, investors are liking what they see.
