Colfax Shares Popped: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Colfax (NYS: CFX) jumped 13% today after the company blew away earnings expectations.

So what: It was an earnings trifecta for Colfax when the company reported sales, earnings, and outlook that topped expectations. Sales reached $186.7 million, earnings per share of $0.32 topped estimates by $0.06, and 2011 earnings guidance was raised to $1.20, to $1.26 per share.

Now what: Sales grew an incredible 52% this quarter, and for the full year the company increased growth guidance to 9% to 11%. At the low end of 2011 estimates, shares now trade at 22 times this year's earnings and momentum looks to be continuing. I think shares have room to run, but I'd like to see an even better value before pushing all of my chips into the stock.

Interested in more info on Colfax? Add it to your watchlist.

At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners