GrafTech Stock Tanks Post Q2 Earnings Miss; Warns On Demand Softness, Suspends Dividend
Portfolio Pulse from Nabaparna Bhattacharya
GrafTech International Ltd. (NYSE:EAF) reported a Q2 sales decline of 49% YoY to $185.56 million, beating the consensus of $179.54 million. The decline was attributed to lower sales volume due to the suspension of operations in Monterrey, Mexico, and industry-wide softness in demand for graphite electrodes. The company also reported an adjusted EPS loss of $(0.02), missing the consensus of $(0.01). GrafTech has suspended its quarterly cash dividend of $0.01 per share and reduced its 2023 sales volume outlook due to ongoing softness in the commercial environment. EAF shares are trading lower by 23.54% at $3.99.
August 04, 2023 | 4:46 pm
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GrafTech's Q2 sales decline, EPS miss, dividend suspension, and reduced sales outlook may negatively impact its stock price in the short term.
GrafTech's Q2 results missed expectations, with a significant sales decline and an EPS miss. The company also suspended its dividend and reduced its sales outlook, indicating potential challenges ahead. These factors are likely to negatively impact investor sentiment and put downward pressure on the stock price in the short term.
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