RTI International Metals Shares Got Crushed: 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 RTI International Metals (NYS: RTI) fell 12% today after the company reported earnings.
So what: Continued delays in Boeing's (NYS: BA) 787 Dreamliner project are putting pressure on the company's results. Still, revenue rose 24% in the fourth quarter to $141.9 million and the company posted a small profit of $15 million, less than a penny per share. The company expects to increase operating income in 2012 to $45 million-$50 million from $27.8 million last year.
Now what: Any company relying heavily on Boeing has to be pulling its hair out over the constant delays. RTI gets 20% of its fabrication unit sales from the Dreamliner, so any delays are going to have a major impact. Long-term, these problems should be remedied, but short-term, I'm not seeing anything that's going to drive the stock higher.
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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.
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