GSM - Why Ferroglobe Stock Fell as Much as 17% in Morning Trading Today
Shares of Ferroglobe (NASDAQ: GSM) , which makes silicon metal and other specialty alloys, fell dramatically in early trading on Nov. 16, at one point dropping nearly 18%. The big news driving the sharp stock decline was the company's third-quarter 2022 earnings release, which hit the market after the close on Nov. 15. Investors were clearly displeased with the reading.
On the top line, Ferroglobe reported revenue of $593 million, down 29.5% year over year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell just shy of 39%, with adjusted EBITDA margins off by 5 percentage points to 31%. Earnings per share tallied up to $0.52, down from $0.98 in the third quarter of 2021.
Management tried to frame the quarter in a positive light, but slower sales and inflation driving costs up were problems that investors seemed unwilling to overlook. Adding to the negative sentiment, meanwhile, was the fact that analysts had been looking for revenue of $695 million and earnings of $0.68 per share in the quarter. Investors tend to frown on companies that miss on the top and bottom lines.
For further details see:
Why Ferroglobe Stock Fell as Much as 17% in Morning Trading Today