Ahead of the Bell: Cytec shares jump premarket

Cytec shares climb 5.4 percent premarket after posting 3Q results, raised full-year outlook

• On 9:30 am EDT, Friday October 16, 2009

NEW YORK (AP) -- Shares of Cytec Industries Inc. jumped in Friday premarket trading, the day after the specialty chemicals maker reported an adjusted third-quarter profit surprise and raised its full-year outlook.

Cytec shares rose $1.86, or 5.4 percent to $36.42 in trading before the opening bell.

On Thursday after the markets closed, Cytec said it earned $12.5 million, or 26 cents per share, down 73 percent from a profit of $46.3 million, or 96 cents per share, during the same period a year prior. The company attributed the decline to falling sales and one-time charges.

However, excluding special items, adjusted earnings for the quarter came to 57 cents per share, beating analyst expectations of 34 cents per share, according to a poll by Thomson Reuters. Analysts typically exclude one-time items.

The company boosted its full-year adjusted profit outlook to between 80 cents and $1 per share, from prior guidance of 60 cents to 90 cents per share. Analysts are predicting a profit of 81 cents per share, excluding items.

KeyBanc Capital Markets analyst Michael Sison maintained a "Buy" rating for the stock, citing its third quarter results, raised profit outlook and improved profits in the coatings and resins segment.

"As a result, we have improved confidence that Cytec can restore its earnings power," Sison said. He held to a $42 price target.

Jefferies & Co. analyst Laurence Alexander reacted positively to the company's improved coatings business and adjusted third-quarter earnings surprise, holding to his "Buy" rating. He raised his price target to $44, up from $38.

Alexander increased his full-year profit outlook to 90 cents per share, up from 80 cents per share.

Buzz up!