Stock Alert: Kraton Jumps 25% On Upbeat Results

(RTTNews) - Shares of specialty chemicals company Kraton Corporation (KRA) are surging more than 25% Thursday morning after reporting better-than-expected first-quarter results.

First quarter net income was $209.0 million or $6.47 per share compared with $13.6 million or $0.39 per share in the first quarter of 2019. In the latest quarter, the company had a gain on disposition of its Cariflex business of of $175.2 million. Excluding items, earnings of $0.27 beat the average estimate of analysts polled by Thomson Reuters at $0.04.

Revenue for the quarter rose to $427.27 million from $456.41 million last year. The consensus estimate was at $392.77 million.

The company said, during the quarter it did not come across any major hardships due to Covid-19. Its plants were running at normal capacities and supply chain remained intact with adequate availability of key raw materials.

However, as the company is not able to assess the magnitude of the impact of Covid-19 for the rest of the year, it did not provide any outlook.

KRA is currently at $16.76. It has traded in the range of $4.45- $35 in the past one year.