Why Imation Corp. Shares Popped

Before you go, we thought you'd like these...
Before you go close icon

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 thesis.

What: Shares of Imation Corp. rose nearly 15% Friday after the company turned in better-than-expected fourth-quarter results.

So what: Quarterly revenue fell 12.7% year over year, to $232.8 million, which translated to adjusted net income of $0.25 per share. Meanwhile, analysts were expecting a $0.22 per share loss on sales of $224.05 million.

Now what: Nonetheless, CEO Mark Lucas admitted that, while their fourth-quarter results were encouraging, they "have not reached an inflection point in our transformation as our growth products have not yet offset secular revenue declines in our legacy business."

For now, while it may be tempting to dive in to take advantage of Imation's momentum now, I think investors would be wise to simply put it on their watch lists to keep tabs on its progress. Before I'd be willing to consider Imation as a viable long-term investment, I'd prefer to see more tangible evidence its growth products can indeed offset declines for its legacy offerings.

These six companies are growing now
In the meantime, there's no shortage of great growth stocks out there for investors who know where to look. So where should you look?

Consider the investing expertise of Motley Fool co-founder David Gardner, who has proved skeptics wrong, time, and time, and time again, with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently, one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

The article Why Imation Corp. Shares Popped originally appeared on Fool.com.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading