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 Ferro (FOE) jumped 16% today after the company reported earnings.
So what: Sales were essentially flat from a year ago at $408.1 million, but net income improved drastically from a $316.1 million loss to a $12.7 million profit in the third quarter. Adjusted for one-time items that was earnings per share of $0.14, four cents better than estimates.
Now what: Management has been trying to cut costs to improve profitability and by 2014 expects annual cost savings to be $70 million. Those cost savings are already helping the bottom line, and management expects full-year earnings to be between $0.42 and $0.45 per share. At best, that puts shares at 26 time this year's earnings, which is still too expensive for me even after the bottom-line beat. I'd just like to see more growth before jumping into the stock.
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