Major market benchmarks mostly finished higher on Tuesday as Wall Street took in a smattering of encouraging earnings reports.
Constellium's bottom-line surprise
Shares of Constellum jumped 10.8% after the Dutch aluminum producer announced stronger-than-expected second-quarter earnings. Quarterly revenue grew 7% year over year to 1.474 billion euros, or roughly $1.72 billion, helped by a combination of higher prices and a 4% increase in global aluminum shipments. On the bottom line, those sales translated to net income of 55 million euros, or 0.41 euros per share. That's roughly $0.47 per share, which was far above consensus estimates for earnings of $0.30 per share.
CEO Jean-Marc Germain called it a "strong" quarter, punctuated by "healthy end market demand, solid operational performance, and a focus on reducing costs."
Constellium also increased its guidance for 2018 adjusted EBITDA growth to be in the range of 11% to 13%, followed by high-single-digit growth next year leading to adjusted EBITDA of over 500 million euros in 2019.
Green Bancorp joins forces with Veritex
Per the terms of the agreement, Green Bancorp investors will receive 0.79 shares of Veritex common stock for every share of Green they own. Based on Veritex's closing price yesterday, that values Green Bancorp at approximately $1.0 billion, or $25.89 per share, for a roughly 13.1% premium from yesterday's closing price.
"The merger of Green and Veritex creates a uniquely focused Dallas/Fort Worth and Houston franchise," stated Green Chairman and CEO Manny Mehos. "We believe this is the best possible combination for our shareholders, colleagues, and clients."
Following the completion of merger -- which has been unanimously approved by both companies' boards but still requires regulatory and shareholder approval -- Veritex and Green shareholders will own roughly 45% and 55% of the combined company, respectively.
Owens-Illinois endures a challenging quarter
Finally, shares of Owens-Illinois closed up 9.3% after the glass bottle manufacturer posted mixed second-quarter results and encouraging guidance.
Owen-Iillinois' revenue climbed 1% year over year to $1.77 billion, falling just below consensus estimates for $1.82 billion. But the company also achieved modest 3% growth in adjusted earnings, to $0.77 per share, exceeding expectations for $0.75 per share.
CEO Andres Lopez pointed out that his company achieved these results in spite of transportation strikes in Brazil and the stronger U.S. dollar. Owens-Illinois' bottom line was helped by favorable pricing trends and a "concerted effort to improve sales mix."
If that weren't enough, the company reiterated guidance for full-year adjusted earnings to be in the range of $2.75 to $2.85 per share, with the caveat that they will likely arrive at the lower end of that range. Still, most analysts on Wall Street were already modeling 2018 earnings of $2.75 per share.
With the stock down nearly 25% over the past year leading up to this report, it's hardly surprising to see Owens-Illinois shares rebounding today.