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Strength Seen in Trinseo (TSE): Can Its 15.8% Jump Turn into More Strength?
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Trinseo (TSE - Free Report) shares soared 15.8% in the last trading session to close at $6.60. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 32.9% gain over the past four weeks.
Shares of Trinseo gained since it announced significant restructuring initiatives that will position the company for long-term growth. The company is consolidating its Engineered Materials, Plastics Solutions and Polystyrene businesses beginning Oct. 1, 2024. This move will minimize the workforce by consolidating management positions and support roles.
Trinseo also announced that it would discontinue virgin polycarbonate production at its Stade, Germany facility by January 2025. The company will then purchase polycarbonate from external vendors, resulting in a yearly run rate profitability improvement of $15-20 million. Trinseo anticipates saving $30 million annually by consolidating the business, with $25 million realized in 2025 and the full benefits by 2026.
This plastics and latex maker is expected to post quarterly loss of $1.39 per share in its upcoming report, which represents a year-over-year change of -35%. Revenues are expected to be $855.1 million, down 2.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Trinseo, the consensus EPS estimate for the quarter has been revised 30.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TSE going forward to see if this recent jump can turn into more strength down the road.
Trinseo is part of the Zacks Rubber - Plastics industry. Core Molding Technologies (CMT - Free Report) , another stock in the same industry, closed the last trading session 1.5% lower at $16.15. CMT has returned -7.5% in the past month.
For Core Molding Technologies, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.23. This represents a change of -56.6% from what the company reported a year ago. Core Molding Technologies currently has a Zacks Rank of #4 (Sell).
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Strength Seen in Trinseo (TSE): Can Its 15.8% Jump Turn into More Strength?
Trinseo (TSE - Free Report) shares soared 15.8% in the last trading session to close at $6.60. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 32.9% gain over the past four weeks.
Shares of Trinseo gained since it announced significant restructuring initiatives that will position the company for long-term growth. The company is consolidating its Engineered Materials, Plastics Solutions and Polystyrene businesses beginning Oct. 1, 2024. This move will minimize the workforce by consolidating management positions and support roles.
Trinseo also announced that it would discontinue virgin polycarbonate production at its Stade, Germany facility by January 2025. The company will then purchase polycarbonate from external vendors, resulting in a yearly run rate profitability improvement of $15-20 million. Trinseo anticipates saving $30 million annually by consolidating the business, with $25 million realized in 2025 and the full benefits by 2026.
This plastics and latex maker is expected to post quarterly loss of $1.39 per share in its upcoming report, which represents a year-over-year change of -35%. Revenues are expected to be $855.1 million, down 2.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Trinseo, the consensus EPS estimate for the quarter has been revised 30.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TSE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Trinseo is part of the Zacks Rubber - Plastics industry. Core Molding Technologies (CMT - Free Report) , another stock in the same industry, closed the last trading session 1.5% lower at $16.15. CMT has returned -7.5% in the past month.
For Core Molding Technologies, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.23. This represents a change of -56.6% from what the company reported a year ago. Core Molding Technologies currently has a Zacks Rank of #4 (Sell).