GRA - W.R. Grace cuts Q1 earnings guidance on winter storm effects

W.R. Grace (GRA) issues downside earnings guidance for Q1, now seeing adjusted EPS of $0.72-$0.74, down from prior guidance of $0.77-$0.80 and below $0.79 analyst consensus estimate.Grace says the revision reflects lower fixed cost absorption during the downtime caused by last month's winter storm, increased costs to supply customers from other Grace manufacturing plants, and costs to repair plants impacted by the weather, partially offset by the effects of stronger demand.Grace sees Q1 sales to come in near the high end of prior guidance of 6%-8% growth vs. the prior year, as ales lost or delayed due to the weather event have been offset by strong demand reflecting continued recovery from the pandemic.Grace appears relatively attractive given the recent $65/share acquisition bid, Rational Expectations writes in a bullish analysis published recently on Seeking Alpha.

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W.R. Grace cuts Q1 earnings guidance on winter storm effects