Why Constellium Stock Rocketed 20% Higher Today
Shares of Constellium (NYSE: CSTM), which makes aluminum products for a variety of industries, were higher by a huge 22% as of 3 p.m., EDT. The gains came quickly, with the stock higher by as much as 15% within the first 30 minutes of trading. The advance briefly hit 24% or so by 11 a.m. before leveling off in the low 20% range throughout most of the day. The big news was earnings.
The headline numbers for the first quarter of 2020 were actually kind of ugly, with a 5% decline in shipments leading to a 6% decline in revenue. Earnings went from 24 million euros in the first quarter of 2019 to a loss of 31 million euros this year. As you might expect, headwinds related to COVID-19 were a major factor, with demand from key end markets, like auto manufacturing and aerospace, falling toward the end of the quarter.
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Source Fool.com
