CRH shares plummeted more than 18% in early trading, hitting a fresh 52-week low of $14.76, before rebounding somewhat. With an hour left in the trading session Tuesday the stock was down 15.2% to $15.29.
"Today's pullback reflects [CRH's] weaker guidance," Longbow Research analyst Garik Shmois told TheStreet, and that led to a negative read-through for industry peers as well.
ADRs of Cemex SAB (CX) fell 4.2% while shares of Vulcan Materials (VMC) lost 2.5% and Martin Marietta Materials (MLM) 4.6%. The Vanguard FTSE All-World ex-US (VEU), an exchange-traded fund that counts CRH and Cemex among its holdings, fell 1.4%.CRH pre-released its financial results in early July and indicated that EBITDA in the second half of the year would be an improvement year-over-year. Tuesday's report of official results for the six months ended June 30 caught Wall Street by surprise because the Irish company materially altered that view. CRH said 2010 earnings before interest, tax, depreciation and amortization would be down by around 10% year-over-year, implying a flat-to down second half, Shmois explained. CRH's performance is driven sharply by a weaker construction situation in the U.S., Shmois said. Weaker-than-expected data released Tuesday by the National Association of Realtors did little to boost shareholders' confidence in CRH, though Shmois said home construction materials accounts for a relatively small percentage of its business.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV