NEW YORK (TheStreet) -- Shares of Ferro (FOE) - Get Report were falling 8.53% to $14.04 on heavy trading volume Thursday after the chemical company missed analysts' estimates for earnings in the second quarter.
Ferro reported earnings of 20 cents a share for the second quarter, below analysts' estimates of 25 cents a share. Revenue fell 8.8% year over year to $268.2 million for the quarter, missing analysts' estimates of $283.43 million.
"We continue to make progress on creating value through organic and inorganic sales growth and by improving our profit margins," Chairman, President, and CEO Peter Thomas said in a statement. "For the quarter, value-added sales increased by 5% on a constant currency basis, aided by the Vetriceramici acquisition and organic growth in the Pigments, Powders, and Oxides and Performance Colors and Glass segments."
About 3 million shares of Ferro were traded by 1:28 p.m. Thursday, above the company's average trading volume of about 712,000 shares a day.
TheStreet Ratings team rates FERRO CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FERRO CORP (FOE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."
You can view the full analysis from the report here: FOE Ratings Report