Why Callaway Golf, 3D Systems, and Ferro Corp are higher on Tuesday
- The benchmark S&P 500 index and Dow Jones slid sharply on Tuesday.
- Investors fear that rising inflation will lead to a tighter monetary policy.
- Callaway Golf, 3D Systems, and Ferro Corp stocks still remained upbeat.
The benchmark S&P 500 index and the Dow Jones Industrial Average tanked over 50 points and over 500 points, respectively, on Tuesday as rising inflation pushed investors to the backfoot on speculation of tighter monetary policy from the Federal Reserve in the upcoming weeks.
Amidst the intraday downtrend, however, Callaway Golf, 3D Systems, and Ferro Corporation were seen swimming against the current, trading about 10% up, 20%, and 20% up, respectively, at the time of writing.
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Callaway Golf Co. (NYSE: ELY) climbed by 6% in after-hours trading on Monday as the company reported quarterly profit and sales that topped Wall Street estimates. Commenting on the earnings report, the CEO of the American global sports equipment manufacturing company said late on Monday:
“Our golf equipment business is continuing to experience unprecedented demand while our soft goods business and Topgolf business are recovering from the pandemic faster than anticipated.”
Callaway Golf opened at £21.97 per share in the stock market on Tuesday and is currently exchanging hands at £23.72, which gives it a market capitalisation of £4.37 billion.
Following in the footsteps of Callaway, 3D Systems Corporation (NYSE: DDD) also published a stronger than expected earnings report for the fiscal first quarter on Monday, which pushed the stock up 13.0% in extended trading. The momentum sustained on Tuesday as 3D Systems opened at £14.30 per share in the stock market and is currently trading at £15.80 per share that values it at £1.97 billion.
The Rock Hill-based engineering company recorded £103.14 million of revenue in Q1 that represents an annualised growth of 8%. 3D Systems earned 10.60 pence per share in the recent quarter, topping experts’ forecast of a much lower 1.41 pence per share.
Ferro Corporation (NYSE: FOE) opened more than 20% up in the stock market as the American producer of tech-based performance materials said Prince International Corporation will acquire it for £1.48 billion in cash. The deal that has already received approval from Ferro’s Board of Directors translates to £15.54 per share.
The news came right after Ferro reported its first-quarter results, highlighting a 14.3% increase in net sales, a 17.8% growth in gross profit, and a 16.6% increase in income from continuing operations.
Ferro Corporation cancelled its earnings teleconference after announcing the deal with Prince International Corporation.