SPX Shares Plunged: 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 engineered products manufacturer SPX Corp. (NYS: SPW) were diving today, losing as much as 15% on heavier-than-average volume.

So what: SPX's second-quarter results certainly didn't look like anything that would kneecap the stock. Revenues were up 16% from last year, to $1.38 billion. On the bottom line, the year-over-year comparison was hurt by a charge in this year's quarter and a tax benefit last year. Adjusting for those items, per-share profit was $0.91 versus $1.00 in 2010. Analysts were expecting $0.89 in earnings per share on revenue of $1.34 billion.

Now what: Though current results topped estimates, investors were hoping for more from the company's forward guidance. Management left its full-year profit forecast fixed at a midpoint of $4.40, which is short of the $4.57 that Wall Street had been expecting. Meanwhile, management estimated $1.00 to $1.10 in earnings per share for the third quarter, notably shy of the $1.48 analysts had in mind.

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At the time this article was published 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.Fool contributorMatt Koppenhefferdoes not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter@KoppTheFoolorFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.

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