Knology Shares Dropped and Recovered: 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 Knology (NAS: KNOL) opened trading down 11% this morning after the company released earnings only to see shares trade up as I am writing.
So what: In the third quarter revenue grew 15% to $130 million falling $2.1 million short of estimates. Net income jumped 74% to $10.3 million, or $0.27 per share, but the experts were expecting earnings of $0.33 per share.
Now what: Connections grew by 12,000 in the third quarter showing that Knology is adding to the customer base quickly. Considering the solid growth rate, I think expectations just got ahead of reality for investors causing the pullback in early trading. But cooler heads prevailed and shares are now about flat on the day, a much better reaction for a quarter that showed a lot of positive signs.
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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.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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