Inergy Shares Dropped: 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 Inergy (NYS: NRGY) fell 10% today after reporting fiscal fourth-quarter earnings.

So what: Revenue jumped 48% to $448.6 million, easily passing the $391.5 million analysts had expected. But the company lost $50.2 million, or $0.42 per share, and analysts had expected only a $0.22 loss in the quarter.

Now what: In the next fiscal year, management is expecting between $101 million and $119 million in earnings, so operations should turn around. The fiscal fourth quarter usually results in a loss, but such a big earnings miss is always concerning for a company. I wouldn't use this discount as a buying opportunity and will wait for better earnings results to jump into shares.

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At the time thisarticle was published Fool contributor Travis Hoium has no 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 don't 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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