Multi-Fineline Electronix Shares Plunged: What You Need to Know

Motley Fool Staff

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 Multi-Fineline Electronix (NAS: MFLX) are short-circuiting today, with the stock plunging by 20% after the company reported earnings results last night.

So what: The circuit-board maker reported fourth-quarter revenue of $191.5 million, which turned into $0.18 in earnings per share. Both figures fell short of market expectations, which were for $200.5 million in sales and $0.34 in earnings per share.

Now what: Forward-looking guidance didn't look any better, with first-quarter sales expected between $200 million and $230 million, well below the consensus estimate of $231.7 million. The company was adversely affected by the flooding in Thailand, where it gets many of its components. Following the gloomy results, Needham & Company has downgraded the stock from "buy" to "hold," citing too many "near-term issues."

Interested in more info on Multi-Fineline Electronix? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not 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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