What happened
Shares of Minerals Technologies (MTX 3.54%) plunged more than 15% by 10:45 a.m. ET on Friday. Weighing on the specialty minerals company was its fourth-quarter results, which fell short of expectations.
So what
Minerals Technologies' sales grew by 5% in the fourth quarter to $508 million, while revenue increased by 14% for the year to $2.13 billion. However, earnings per share declined in both periods. Adjusted earnings were $0.62 per share in the fourth quarter (compared to $1.23 per share in the year-ago period), pushing the full-year total to $3.73 per share (down from $4.86 per share in 2021). The company missed the analysts' consensus estimate for revenue ($9 million below expectations) and adjusted earnings ($0.58 per share below the estimate).
The company "had a challenging finish to an otherwise strong year," said CEO Douglas Dietrich in the earnings press release. Several factors impacted the company's results in the period. Sales volumes were under pressure due to COVID-19-related shutdowns in China and severe weather in the western U.S. Meanwhile, elevated inflation, primarily in Europe, also impacted its results. Foreign exchange headwinds also impacted revenue. On a more positive note, price increases of $210 million helped offset inflation's $191 million impact last year.
Now what
While Mineral Technologies battled headwinds during the fourth quarter, it has continued to execute its growth strategy. The company completed the acquisition of Concept Pet, which it expects to help it deliver more stable growth. Because of that, Dietrich said, "the company is well-positioned to continue to deliver higher levels of profitable growth." If it can achieve that goal, shares could bounce back.
