Graphite electrodes specialist GrafTech International (NYSE: EAF) missed on quarterly results and sounded a cautious tone about 2023. Investors were caught off guard by the pessimism, sending GrafTech shares down 13.6% in February, according to data provided by S&P Global Market Intelligence.

GrafTech is a little-known company that plays an important role in the global steelmaking industry. GrafTech is the world's largest supplier of graphite electrodes, a key component in the electric-arc steel furnaces that are capturing share due to their relatively low costs and more environmentally friendly process.

But the company's fourth-quarter earnings came in below what analysts had expected, due in part to internal issues including trouble at GrafTech's Mexican facility. GrafTech is also dealing with macroeconomic headwinds beyond its control. With so many end users of steel uncertain about the economy, demand is down and steelmakers in turn need fewer electrodes.

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Source Fool.com