Sun Hydraulics Shares Plummeted: What You Need to Know
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 Sun Hydraulics (NAS: SNHY) plunged nearly 19% in early trading when management's fourth-quarter outlook came in below Wall Street estimates.
So what: So much for a good third quarter, eh? Revenue rose 39% to $53 million while profits doubled to $0.44 a share. Analysts were looking for $0.39 on $52.9 million in sales, according to data compiled by Yahoo! Finance.
Now what: Business will drop off in the fourth quarter, but at a faster rate than Wall Street would like. Management expects revenue to improve just 5% year over year to $44 million, resulting in $0.26 to $0.28 in earnings per share. Analysts were expecting $49 million and $0.32, respectively. Does the miss matter? You tell me. Please weigh in using the comments box below.
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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.The Motley Fool owns shares of Sun Hydraulics.Motley Fool newsletter serviceshave recommended buying shares of Sun Hydraulics. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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