Knology Shares Popped: What You Need to Know

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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 communication-service company Knology (NAS: KNOL) traded 10% higher today after the company beat earnings estimates.

So what: Revenue cruised 16% higher in the second quarter to $131.4 million, versus a $129.6 million estimate. Earnings per share were also a surprise at $0.36, $0.04 better than expected.

Now what: This is the second quarter in a row that Knology has topped estimates as business momentum continues. The company has executed in bringing new acquisitions into the fold, which has helped the company add customers. Shares are now trading at 9 times 2012 estimates, a pretty good value for a company that is still growing.

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

At the time this article was published Fool contributor Travis Hoium has no 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 don't 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.

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