Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Ferro Corporation's Stock Dropped 18% Today

By Travis Hoium - Jul 30, 2015 at 12:48PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A disappointing quarter has this stock plunging, but is the sell-off overdone?

What: Shares of Ferro Corporation ( FOE 0.23% ) fell as much as 18% today after the company reported second-quarter earnings.

So what: Net sales dropped 8.8% in the quarter to $268.2 million and net income fell 34% to $6.6 million, or $0.14 per share, for continued operations. After adjusting for one-time items, the company earned $0.20 per share, but that fell short of the $0.25 estimate Wall Street had set, and that's left investors disappointed today.  

Now what: A strong dollar is hurting sales at Ferro, as it is for most American companies right now. But profit margins have increased 2.5% over the past year, so a focus on high-value products is beginning to pay off. I think the sell-off is overdone considering the steady improvement and shares trading at just under 15 times earnings. That's a decent value in today's market.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ferro Corporation Stock Quote
Ferro Corporation
$21.38 (0.23%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/29/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.