GCP Applied Technologies is a Zacks Rank #5 (Strong Sell).  The company has missed the Zacks Consensus Estimate in each of the last three quarters and it is the Bear of the Day today.

Description

GCP Applied Technologies Inc. offer specialty construction chemicals and building materials as well as packaging technologies. GCP Applied Technologies Inc. is headquatered Cambridge, Massachusetts.

Most Recent Quarter

Despite GCP missing the most recent quarter, the stock jumped more than 25% in the session following the release.

The company reported EPS of $0.29 when $0.30 was expected.  The 1 cent miss translates into a -3.3% negative earnings surprise.  Revenues came in $5M under expectations for a 1.3% negative revenue surprise.

Division Being Sold

At the same time of the earnings release, the company noted that they entered into an agreement to sell their Darex Packaging Technologies business to $1.05B to Henkel.  The transaction is expected to close in the middle of 2017.

The sale of the business likely means that estimates will be chopped.  The question is will the stock see a similar move when investors realize that while GCP may be flush with cash the entire company is trading at a value of just over $2.3B at about $33 per share.

GCP Applied Technologies Inc. Price and Consensus

GCP Applied Technologies Inc. Price and Consensus | GCP Applied Technologies Inc. Quote

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