Business

Historic Up Move for Forterra Inc (NASDAQ:FRTA)

Forterra Inc (NASDAQ:FRTA)

Shares of Forterra Inc (NASDAQ:FRTA) are up over 35% and having one of their best days in the company’s history as it beat EBITDA expectations. FRTA stock is trading north of $6.00 after the company released their Q3 earnings report. This huge up move comes less than 60 days after the company established a 52-week low of $3.02 in early September.

Forterra Inc (NASDAQ:FRTA)

Forterra Q3 Results

Forterra Inc (NASDAQ:FRTA), based in Irving, TX, reported a net loss for the quarter of (-$11.5) million, or (-$0.18) per share. According to analysts surveyed by Zacks Investment Research, the consensus Q3 2017 EPS figure was $0.06. During the same period last year, Forterra reported net income of $8.4 million, or $0.19 per share. The loss was attributed to the sale, for $31.6 million. Of the company’s pressure pipe business. The release also noted the negative effects of the two hurricanes that impacted operations. As of September 30, 2017, Forterra had cash of $41.1 million and outstanding debt on its senior term loan of $1.2 billion.

Two bright spots helped launch the shares higher this morning. The first was the net sales figure that increased to $444.3 million, compared to $441.1 million in the prior year quarter. Another factor was the company’s adjusted EBITDA figure. It surprised the street by coming in at $60.9 million.

Forterra Inc (NASDAQ:FRTA) CEO Jeff Bradley commented, “Our results this quarter demonstrate our ability to successfully execute on multiple objectives on a sequential quarter basis, including higher selling prices, lower costs, and improved earnings. Additionally, in spite of the impact of two major hurricanes, Adjusted EBITDA was above the mid-point of our guidance range.  My expectation for continued improvement in our earnings is supported by ongoing initiatives, a solid backlog and favorable market conditions.”

FRTA Stock Performance

Forterra Inc (NASDAQ:FRTA) shareholders have had a bad year. Year-to-date the stock is down over 75%. However the stock is well of its 52-week low of $3.02 that was seen in early September. The recent price gain will erase any monthly or quarterly losses and fill the gap created in mid-August when FRTA stock cratered from $8 and gapped down to open close to the $6 handle.

Eight firms follow Forterra Inc (NASDAQ:FRTA). Five rate FRTA stock as a “Hold”. While three rate the shares as a “Strong Buy”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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