Boise 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 Boise (NYS: BZ) fell 18% today after the company released earnings.

So what: Sales increased to $603.1 million in the second quarter, up from $521.6 million last year and $568.8 million in the first quarter, and earnings per share were $0.11. But analysts were expecting $611 million in revenue and $0.15 per share in earnings, hence the big drop today.

Now what: The drop today is pretty extreme considering shares are trading at just 6 times forward earnings estimates. Boise does have $763.1 million in long-term debt, but $236 million in cash offsets some of that and the company is still solidly profitable. I think that this is a great buying opportunity and that investors have beaten up Boise's shares far too much.

Interested in more info on Boise? 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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