Why Constellium Stock Plunged as Much as 15% Today
Shares of Constellium (NYSE: CSTM), which makes value-added aluminum products, fell as much as 15% on Wednesday, drifting lower throughout most of the trading day. The big news was the company's third-quarter 2022 earnings release, which was a bit of a mixed bag. It seems investors chose to focus on the negatives and not the positives.
On the top line, Constellium reported sales were up 27% from the year-ago quarter. Net income increased nearly 33% from the prior year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 12% year over year, and cash from operations more than doubled.
Rising prices more than offset a 2% year-over-year decline in metric tons sold. So far, so good, but it gets even better, given that the company also beat Wall Street expectations on the top and bottom lines. Normally investors would see such news as a reason to celebrate.
Source Fool.com
