LSB Industries Shares Popped: What You Need to Know

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 LSB Industries (NYSE: LXU  ) rose 13% today after the company released fourth-quarter earnings.

So what: Revenue rose 25% during the quarter to $215.4 million and earnings per share rose from $0.79 to $1.19. The limited number of analysts who follow the stock had expected $195.1 million in revenue and $0.86 per share in earnings.

Now what: The chemical business was the driver in the fourth quarter, growing at 46%; management remains positive for more growth in 2012. For the full year 2011, the company earned $3.80 per share and with the stock's current price, investors can buy in at just 10.8 times trailing earnings. Considering the size of the earnings beat and the stock's value, I think that shares still have further to run in 2012.

Interested in more info on LSB Industries? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

The Motley Fool owns shares of LSB Industries. 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.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1796922, ~/Articles/ArticleHandler.aspx, 3/27/2015 2:56:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...