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Earnings met expectations, but it was hurricane news that investors clung to.
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Shares of materials supplier Rayonier Advanced Materials Inc (RYAM +0.05%) jumped as much as 11.2% in trading Friday after reporting third-quarter results. At 3:55 p.m. EDT, shares were still up 10.4% on the day.
Revenue was up $3 million versus a year ago, to $210 million, and was in line with analyst expectations. Net income was $12 million, or $0.28 per share, and on an adjusted basis, earnings of $0.18 per share met expectations.
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A stock doesn't usually climb just by meeting expectations, but investors likely were happy that impacts from Hurricane Irma aren't expected to affect the company beyond 2017. But they'll negatively impact next quarter, leaving full-year prices and volume down 4% to 5%.
Shares of Rayonier are really gaining back ground lost when hurricane season started, so investors shouldn't take away too much from the pop. There was likely fear that conditions would be even worse, especially since a major customer was heavily damaged. I don't think this earnings report was good enough to justify the bounce, but if Rayonier can limit Irma's impacts to 2017, it would be a positive for the business long term.