Corn Products falls to 2 1/2-month low on heavy volume after 3Q results |
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Tue, 30 Oct 2007 17:05
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NEW YORK (Thomson Financial) - Shares of Corn Products International tumbled to a 2 1/2-month low on heavy volume Tuesday, after the corn refiner reported third-quarter earnings that missed expectations.The Westchester, Ill. company said ahead of the open that net income for the September quarter was $51.1 million, or 66 cents a share. If you exclude a one-time gain of 5 cents a share related to the company's investment in CME Group, earnings would have been 61 cents a share, missing the mean estimate of analysts surveyed by Thomson Financial of 67 cents a share.Revenue, however, rose 30% to $877.4 million, well above analyst forecasts of $817.8 million, and the company said it expected 2007 earnings in the 'upper range' of its previous estimate of $2.35 to $2.55 a share.The stock dropped 15% to $41.03 in midday trading, the lowest price seen since Aug. 16. Volume was 2.3 million shares, or nearly 3 times the full-day average of about 806,900 shares over the past 30 days.The stock had reached an all-time high of $49.30 in intraday trading on Monday, before closing at $48.29. At that price, the stock had gained 43% since the end of 2006, and more than doubled over the past 2 years.'We believe that expectations have gotten a bit lofty and today's report will realign them,' said Citigroup analyst David Driscoll in a research note.Tomi Kilgoretk1COPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Minn.: Minnesota harvest slowed 