Systemax 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 electronics retailer Systemax (NYS: SYX) fell 10% in intraday trading today after the company released earnings.

So what: Systemax's revenue rose 8% to $872.2 million but fell short of the $886 million analysts had expected. Earnings per share also improved to $0.42 from $0.25 a year ago. If you exclude special items, which analysts don't include in estimates, earnings per share were $0.29, or just short of estimates.

Now what: This isn't a huge growth business, but the consistent improvement has to be a little encouraging for investors. Despite the earnings miss, I think there is a lot of value in shares that trade at just under 9 times forward earnings estimates. Even if those estimates are revised down slightly, Systemax shares are giving investors a lot of value.

Interested in more info on Systemax? 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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