Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of PolyOne jumped 10% today after the company reported earnings.
So what: First quarter revenue was up 7.5% to $801.1 million and adjusted earnings per share rose 29% to $0.31. Analysts expected higher revenue of $817.1 million but only $0.26 in earnings per share so the bottom line is what investors are excited about today.
Now what: The specialty business drove earnings on a 34.4 increase in operating income. There is clearly a lot of momentum in the business because this is the 14th consecutive quarter of double-digit, adjusted-earnings-per-share growth. The stock trades at just 14 times forward estimates, which is an attractive price considering the continued growth and I think shares can move higher long term.
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The article Why PolyOne's Shares Jumped originally appeared on Fool.com.Motley Fool contributor 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.
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