Corn Products International Shares Plunged: 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 Corn Products International (NYS: CPO) fell as much as 13% in intraday trading today after the company released earnings.

So what: Revenue was actually better than expected and hit $1.58 billion in the quarter. It was the bottom line investors were concerned about, and adjusted earnings per share of $1.10 fell $0.03 short of estimates.

Now what: Guidance was also mixed versus estimates, and the company sees 2011 revenue of $6 billion and earnings per share between $4.85 and $5.15. Analysts had expected earnings of $4.61 per share and revenue of $6.41 billion. Even at the low end of the company's estimates, shares only trade at 10.7 times 2011 earnings, a great value considering the company's recent growth.

Interested in more info on Corn Products International? Add it to your watchlist.

At the time thisarticle 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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Originally published