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 Century Aluminum (NASDAQ:CENX) fell 14% today after the company reported a big earnings miss.
So what: Revenue rose 3% in the second quarter to $331.9 million but the company reported a loss of $34.6 million, or $0.39 per share. Analysts were expecting a loss of $0.16 per share so the sheer size of the loss was what shocked investors today.
Now what: Based on management's comments, the U.S. remains a fairly consistent source of demand but Europe and China are uncertain. The Chinese economy in particular has slowed growth and, if its government pulls back on its stimulus, we could even see a recession, which would hurt the demand for metals. This just isn't an industry I would be buying into right now given the net loss and the likely slowing in China over the next few years.
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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.