Newpark Resources 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 Newpark Resources (NYS: NR) fell as much as 12% today in choppy trading today.

So what: Revenue was up 27% to $230.8 million in the second quarter and diluted earnings per share were up to $0.19. Analysts were only expecting $212.4 million in revenue and $0.16 in earnings, so the quarter was much better than expected.

Now what: Sometimes I throw my hands up when I see how the market responds to earnings. I don't see any big red flags for Newpark, and still, shares are off 7% as I'm writing. I don't see anything but a buying opportunity today after a better-than-expected quarter. Mr. Market must have woken up on the wrong side of the bed this morning.

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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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