By Sam Boughedda
Investing.com -- Shares of chemical company AdvanSix Inc (NYSE:ASIX) fell 19% after the company reported its fourth quarter earnings before the bell, missing on expectations.
The company also reported that it is to acquire U.S. Amines, a producer of alkyl and specialty amines, in a $100 million all-cash deal.
AdvanSix reported earnings per share of 80 cents on revenue of $424.06 million. Based on a poll of analysts by Investing.com, the consensus was for earnings per share of 81 cents on revenue of $408.3 million.
Sales for AdvanSix rose approximately 45% against the prior year, driven by a 20% favorable impact of market-based pricing, 18% higher raw material pass-through pricing, and 7% higher volume.
Looking forward, the company said it is targeting significant earnings growth in 2022, "supported by expected strong execution and robust ammonium sulfate fertilizer performance."
"2022 is shaping up to be another exciting year for AdvanSix. We are targeting significant earnings growth as we continue to execute on our strategic priorities including superior operational excellence, differentiated product growth and being strong and disciplined stewards of capital," said Erin Kane, president and CEO of AdvanSix.
Despite the company's positivity for the year ahead, shares hit a low of $32.62 Friday.
However, Stifel analyst Vincent Anderson told investors in a research note that the earnings release was positive and the acquisition is "strategically and financially sound."
The analyst — who has a buy rating and a $58 price target on the stock — added that he sees the sell-off as a buying opportunity.