Why Rayonier Advanced Materials Stock Plunged Today
Shares of Rayonier Advanced Materials (NYSE: RYAM), which makes pulp and other wood products, sold off sharply on May 5, losing as much as 25.6% of their value at one point during the session. The big reason was the company's first-quarter earnings results, which were released after the market closed on May 4. Investors were not pleased with what they saw.
Rayonier Advanced Materials' first-quarter 2021 revenue came in at $465 million, up 13% from the $410 million it brought in during prior-year period. However, the top line fell 8% sequentially from the fourth quarter. Meanwhile, on the bottom line, the company posted a loss of $0.43 per share, $0.05 worse than the $0.38-per-share loss in the year-ago period. The company had a profit of $0.14 per share in Q4 2020. So it wasn't exactly the best showing ever. But, in and of themselves, these numbers weren't really enough to justify such a large share-price decline.
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Source Fool.com
