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 specialty chemical company Rockwood Holdings (NYS: ROC) fell 10% in early trading after the company released earnings.
So what: Earnings were in line with expectations at $1.06 per share but revenue is what has investors concerned today. Revenue was only up 17.4% to $940.9 million and analysts were expecting $965.2 million in revenue, so of course the market freaked out today.
Now what: I'm not overly concerned about the revenue miss because of the strong revenue growth and continually improving margins. Shares are trading below 10 times forward earnings estimates and with a double-digit growth rate I think shares are looking very attractive. Today's drop provides long-term investors a nice buying opportunity for shares in this growing company.
Interested in more info on Rockwood Holdings? Add it to your watchlist byclicking here.
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.The Motley Fool owns shares of Rockwood Holdings. 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.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.