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What: Shares of chemical maker Olin Corporation (NYSE:OLN) fell as much as 17% in early trading Wednesday after the company reported disappointing fourth quarter results.

So what: Sales in the quarter was $1.27 billion, which was well short of the $1.54 billion Wall Street analysts had estimated. Bottom line results were also disappointing with Olin reporting a loss of $59.3 million, or $0.37 per share, after analysts expected a $0.20 per share profit.  

To make matters worse, first quarter earnings are expected to be $0.22 to $0.32 per share, even after pulling out acquisition related costs, and analysts had been expecting earnings of $0.33 per share.

Now what: Olin's results can be volatility quarter to quarter and the acquisition of Dow's chlor alkali and other businesses. That muddied results a bit, including $84.6 million in acquisition related costs that dragged down results. Expectations for the company post merger may have been a bit too high but now that it's complete and synergies will start being realized I think the stock is in an attractive position.

Olin's enterprise value, or debt plus equity, is just 6.5 time the midpoint of $915 to $985 in EBITDA guided for 2016. That's a solid value and will give management the ability to pay down debt to reduce leverage or even increase the dividend. One quarter's earnings miss should just be a blip on the radar for Olin.

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.