Universal Stainless shares plunge after results miss estimates
(Reuters) - Shares of Universal Stainless & Alloy Products (USAP.O) plunged 23 percent after the steelmaker reported lower-than-expected quarterly results on a drop in shipments to its power-generation customers.
The company's stock, which touched a seven-month low of $32.28 in morning trading, was one of the top percentage losers on the Nasdaq.
The company on Thursday warned that demand for its specialty steel products would continue to soften due to inventory adjustments.
Second-quarter net income dropped 18 percent to $4.5 million, or 62 cents per share.
Analysts on average had expected earnings of 83 cents per share, according to Thomson Reuters I/B/E/S.
Sales rose 7 percent to $67.9 million, but still missed estimates of $83.4 million.
Tons shipped to the power-generation market in the quarter declined by 25 percent from the first quarter, the company said.
Bridgeville, Pennsylvania-based Universal sells stainless steel and tool steel products to re-rollers, forgers and original equipment manufacturers (OEMs) in the aerospace, petrochemical and power-generation markets.
(Reporting by Kartick Jagtap in Bangalore; Editing by Maju Samuel)
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