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What: Shares of chemicals maker Chemtura
So what: Revenue was down just a bit in the fourth quarter to $677 million, but earnings were stronger than expected. For the quarter, the company made $26 million on a managed basis, which is $0.26 per share, and analysts had expected earnings per share of just $0.11.
Now what: Despite weak demand in the electronics market, the company was able to deliver strong results in the quarter. Based on management comments, 2012 should be slightly better, but expecting a jump in demand isn't realistic. Shares are trading at 15.6 times expected earnings in 2012, and if the economy improves throughout the year, Chemtura could capitalize and outperform those expectations again.
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