ExamWorks 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 medical examination specialist ExamWorks (NYS: EXAM) plummeted 30% Wednesday after its quarterly results and full-year guidance disappointed Wall Street.

So what: ExamWorks' second-quarter top and bottom lines ($72 million and $106.7 million, respectively) were pretty much in line with analyst estimates, but it's obvious that some big shareholders wanted a lot more. In fact, the shares are flirting with the lowest point they've seen since the company's late-October IPO.

Now what: I'd cautiously look into this plunge as a possible buying opportunity. Management's full-year revenue outlook of between $405 million and $415 million was also in line with Wall Street estimates, making today's nasty sell-off all the more baffling -- and potentially profitable. If ExamWorks is truly, in Chairman Richard Perlman's words, "ideally positioned to sustain this high-growth rate," today's buyers should be nicely positioned as well.

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At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies 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 Fool'sdisclosure policyalways gets a perfect score.

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Originally published