AVX Shares Popped: 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 AVX (NYS: AVX) rose more than 11% in early trading and then closed up around 9%. Third-quarter results were mixed, but management also authorized a 36% increase in the component manufacturer's dividend payout.

So what: Revenue fell 6% to $404.8 million while per-share earnings slipped from $0.40 to $0.36 a share. Sales missed analyst expectations, yet Wall Street had been calling for just $0.34 a share in profit.

Now what: Coupled with the dividend -- which now yields more than 2% -- AVX's earnings beat appears to have been more than enough to please investors. With the stock trading for less than the long-term earnings growth analysts expect, I can't say I blame them. Do you agree? Disagree? Please weigh in using the comments box below.

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At the time thisarticle was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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