IPC The Hospitalist 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 physician group practitioner IPC The Hospitalist (NAS: IPCM) fell as much as 14% after reporting worse than expected second-quarter earnings.

So what: Revenue increased 28% to $111.7 million while net profit improved 20% to $6.5 million, or $0.39 a share. Analysts were expecting $0.43 a share.

Now what: The magnitude of the selloff probably has more to do with history than the miss itself. According to Earnings.com, IPC hasn't come in below estimates in any quarter in at least three years. Is it the end of an era, or just a temporary hiccup? You tell me. 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.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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