Why Patrick Industries Inc. Shares Jumped Today
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 Patrick Industries jumped 17% today following the earnings release from the maker of materials and products for recreational vehicles and manufactured housing.
So what: Sales rose 38% in the fourth quarter to $146.6 million, driven by growth in the RV industry. Net income was up from $3.2 million a year ago to $5 million, or $0.47 per share.
Now what: Improving end markets are helping drive results and for the full year revenue was up 36%. My only concern is whether that growth rate can be maintained this year, as shares are already trading at 20 times trailing earnings. That's just too steep for me to jump on today, but the fourth quarter showed major progress and Patrick Industries could prove me wrong if growth continues in 2014.
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The article Why Patrick Industries Inc. Shares Jumped Today originally appeared on Fool.com.Travis Hoium 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.
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