Ferro Shares Fall On Lower Guidance, Sale News
CLEVELAND (AP) ⿿ Ferro Corp.'s shares plunged 23 percent Wednesday after the specialty chemical company lowered its guidance and said it is exploring the strategic options for its solar paste business.
THE SPARK: Ferro said Tuesday that due to struggles in its solar pastes and metal powders businesses, it expects to earn 7 to 12 cents per share in 2012 on an adjusted basis. That is down from its prior forecast of 14 to 17 cents per share.
Analysts polled by FactSet were expecting the company to earn 17 cents per share prior to the announcement.
The company said that the market for conductive pastes used in the manufacturing of solar cells has been difficult, due to excess supply that has led to a decline in prices for solar panels. Ferro said it is now exploring strategic options for the business in an effort to eliminate its drag on earnings.
THE BIG PICTURE: The solar panel industry has been struggling with a market glut of products, low demand in Europe and a flood of cheap Asian imports. This has driven down solar panel prices and created intense competition among manufacturers. That lower demand has hurt companies such as Ferro, which provides products that support the solar panel industry. THE ANALYSIS: KeyBanc Capital Markets analyst Michael Sison reiterated a "Hold" rating on the company's shares. He expects the company to run a loss through the back half of the year and sees more uncertainty about its longer-term turnaround story. "There lacks a clear catalyst in the near term to drive an attractive return commensurate with the current risks," Sison wrote in a research note. SHARE ACTION: Ferro's shares fell 84 cents to $2.79 by midday. Its shares are trading at the low end of its 52-week trading range of $2.65 and $7.50.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim 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
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
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
Stocks Under $10
TRY IT FREEDavid 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
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll 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 + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur 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
