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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.
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