Covestro (OTCMKTS:COVTY) Shares Gap Up - Here's What Happened

Key Points

• Shares gapped up at the open — the stock jumped from a prior close of $33.49 to an open of $34.42 but was last at $33.55 on light volume (2,964 shares).
• Big earnings miss: Covestro reported ($1.75) EPS vs. consensus ($0.08), though revenue of $3.44B slightly beat estimates; the company showed a negative net margin (-6.97%) and negative ROE (-13.22%).
• Fundamentals show a negative trailing P/E (-13.33) and moving averages around $34.7, but sell-side analysts forecast a modest turnaround with about $0.03 EPS expected for the current fiscal year.

Covestro AG Sponsored ADR (OTCMKTS:COVTY - Get Free Report) shares gapped up before the market opened on Tuesday . The stock had previously closed at $33.49, but opened at $34.42. Covestro shares last traded at $33.55, with a volume of 2,964 shares trading hands.

Covestro Price Performance

The business's 50 day moving average price is $34.72 and its two-hundred day moving average price is $34.64. The stock has a market cap of $14.01 billion, a P/E ratio of -13.33 and a beta of 0.95. The company has a current ratio of 1.53, a quick ratio of 0.88 and a debt-to-equity ratio of 0.24.

Covestro (OTCMKTS:COVTY - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported ($1.75) earnings per share for the quarter, missing analysts' consensus estimates of ($0.08) by ($1.67). The company had revenue of $3.44 billion for the quarter, compared to the consensus estimate of $3.42 billion. Covestro had a negative net margin of 6.97% and a negative return on equity of 13.22%. As a group, sell-side analysts expect that Covestro AG Sponsored ADR will post 0.03 earnings per share for the current fiscal year.

Covestro Company Profile

Covestro AG is a leading global manufacturer of high-performance polymer materials. Established in 2015 following its spin-off from Bayer MaterialScience, the company builds on a legacy of innovation dating back to the early 20th century. Covestro develops and produces a wide range of plastics and coatings designed to meet the evolving needs of various industrial sectors.

The company's core product portfolio includes polyurethanes, polycarbonates and specialty coatings, adhesives, sealants and elastomers.

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