Why Tredegar's Share's Popped

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 manufacturer Tredegar (NYSE: TG  ) jumped 11% today, after it reported earnings.

So what: Sales rose 8% in the quarter, to $218.8 million, which was in-line with estimates. Earnings, however, jumped 60%, to $13.5 million, or $0.42 per share, well above the $0.26 that analysts expected.

Now what: Overall results were solid for the company, but management was cautious about the future. There's volume weakness in the business and, while margins were up, it's not clear that the momentum will continue. The company's 19 forward P/E ratio isn't terrible given earnings growth, but I would like to see higher revenue growth before jumping in.

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

Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDrawThe Motley Fool has no positions in the stocks mentioned above. 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.


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