Insituform Technologies 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 Insituform Technologies (NAS: INSU) have tanked today, falling 10% after the company updated guidance.
So what: Management updated third-quarter earnings guidance to $0.25 to $0.27 per share, falling well below the $0.43 analysts were expecting. For the full year, management sees earnings per share of $0.90 to $1.00, also below estimates of $1.18 per share.
Now what: The North American sewer rehabilitation business has been hit especially hard this year by delays and smaller-than-expected projects. However, management has reorganized the company to cope with these challenges. The news is disappointing, but the company is still profitable and expects conditions to improve going forward. I wouldn't start to panic based on today's news.
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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.The Motley Fool owns shares of Insituform Technologies. 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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