April 25, 2012
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 specialty chemicals and materials maker Rockwood Holdings (NYSE: ROC ) jumped 11% in late trading after the company announced earnings this morning.
So what: First-quarter profit fell 57% from a year ago, but adjusted income rose after accounting for a one-time gain a year ago. Revenue was down 1% to $909.5 million, and adjusted income rose 18% to $0.94 per share.
Now what: Both revenue and profits were below expectations, but investors may be looking more at management's comments that demand for lithium products would grow by double digits in 2012. The company was also able to raise prices, and with two new plants coming online there could be room for upside. I'm not seeing any great catalysts to buy today, but keep an eye on earnings in the future as more of the company's supply comes on the market.
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