Huntsman Corporation (HUN) witnessed a significant plunge in its stock price, falling 6.62% on November 5th, following the release of its third-quarter earnings results. Despite meeting analyst expectations for adjusted earnings per share (EPS), the company's financial performance and outlook raised concerns among investors.
For the quarter ended September 30, Huntsman reported adjusted EPS of $0.10, down from $0.15 a year earlier but in line with analyst estimates. However, revenue of $1.54 billion fell short of the expected $1.55 billion, indicating challenges in driving top-line growth.
The company's overall profitability has been declining, with its return on capital employed (ROCE) dropping from 9.4% five years ago to a mere 0.5%. This trend suggests that Huntsman's growth prospects have weakened, and it is struggling to generate adequate returns on its invested capital, potentially due to increased competition or margin pressures.