This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ferro Shares Tumble On 4Q Loss, Weak 2012 Guidance

Stocks in this article: FOE

NEW YORK (AP) â¿¿ Shares of Ferro Corp. tumbled Wednesday after the materials manufacturing company said it posted a $28.8 million fourth-quarter loss and issued a lower-than-expected 2012 profit guidance.

THE SPARK: Cleveland-based Ferro's loss amounted to 33 cents per share and compared with a profit of $1.8 million, or 2 cents per share, in the same quarter a year earlier.

Excluding one-time items, the company said it posted an adjusted profit of 8 cents per share for the three months ended in December. Sales fell 18 percent to $443 million.

The results came up short of Wall Street predictions. Analysts, on average, expected an adjusted loss of 4 cents per share on $467.3 million in revenue, according to a FactSet poll.

THE BIG PICTURE: Ferro attributed the drop in overall sales to lower-than-expected contributions from its electronic materials business.

A drop in demand for conductive pastes used in solar cells and metal powders used in a variety of electronic products lowered that business' sales by $103 million. Excluding electronic materials, sales rose 2.4 percent, Ferro said.

Meanwhile, sales rose at the company's performance coatings, polymer additives, specialty plastics and pharmaceuticals businesses.

Ferro also warned that demand for conductive pastes remains weak, because of low demand from solar cell makers and high inventories of completed solar power modules, especially in Europe.

The company said it expects to post an adjusted 1012 profit of 40 cents to 65 cents per share, well below the average analysts' estimate of 69 cents per share.

Ferro also said it expects its 2012 sales to be relatively flat compared with the previous year, after adjusting for the expected negative effects of exchange rates. Analysts were forecasting sales of $2.16 billion, growth of less than 1 percent over 2011 sales.

THE ANALYSIS: KeyBanc analyst Michael Sison backed his "Hold" rating for Ferro in a Wednesday note to investors, saying that the sales increase, excluding the electronic materials business, is an "encouraging sign" that the rest of the company may be recovering.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs