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 maker Ashland
So what: Revenue grew 22.5% to $1.85 billion in the quarter and topped estimates of $1.75 billion. Adjusted earnings per share also easily surpassed estimates at $1.01, but a $3.51 pension charge made the quarter a little less appealing.
Now what: Costs also jumped in the quarter, with cost of sales and administrative costs outpacing sales growth. The pension charge was due to an accounting change that used to be recorded once a year.
The quarter doesn't look as bad as the market thinks, and with shares trading at just nine times forward earnings estimates, I think this is a good time to jump in.
Interested in more info on Ashland? Add it to your watchlist by clicking here.
