Why Taminco Shares Jumped
May 14th 2013 9:22PM
Updated May 15th 2013 1:00AM
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 Taminco (NYSE: TAM) were looking brighter today, gaining as much 13% after a promising quarterly earnings report, its first as a public company.
So what: The world's largest alkylamine maker, and supplier for industries ranging from agriculture to oil and gas to personal care, said net sales were up 10% to a record $310 million, and volume increased 7% to 144,000 tons. Earnings per share came in at $0.16, a huge turnaround from a year ago, when the company had a loss of $0.88 a share. Gross profit increased by more than 600% from a year ago. Estimates were unavailable for the newly public company, but CEO Laurent Lenoir touted the company's "successful execution of recent growth projects in North America."
Now what: Lenoir noted that first-quarter performance was strong in nearly every segment except crop protection, which was affected by adverse weather conditions. Looking ahead, he sees record EBITDA for the year but did not give a range on any financial numbers such as revenue and earnings per share. The funds from the recent IPO should help alleviate the company's interest expense and fuel future growth, but I'd like to see the top line grow faster than 10% before getting on board.
What macro trend was Warren Buffett referring to when he said "this is the tapeworm that's eating at American competitiveness"? Find out in our free report: "What's Really Eating at America's Competitiveness." You'll also discover an idea to profit as companies work to eradicate this efficiency-sucking tapeworm. Just click here for free, immediate access.
The article Why Taminco Shares Jumped originally appeared on Fool.com.Fool contributor Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.