Focus Media Shares Popped, Then Sank: 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 Chinese advertising expert Focus Media (NAS: FMCN) jumped as much as 13% after the company announced its third-quarter results, but by day's end the shares had settled back down to a less-than-1% gain.
So what: There was a lot for investors to cheer in the quarterly report. Revenue clocked in at $211 million, up 18% from last year and easily better than the $187 million that analysts were looking for. Non-GAAP earnings per share, meanwhile, leaped 69% year over year to $0.59, topping the $0.47 average Wall Street estimate.
Now what: What's even better is that the company also had a very bullish outlook for the rest of the year, as well as the company's opportunities for years into the future. Looking specifically at the fourth quarter, management projected both revenue and earnings above what Wall Street is currently expecting.
So why did investors lose their excitement as the day wore on? That's a good question, and it's one that I'll file under "mysteries of the market." The bottom line, though, is that for Focus Media investors, today's earnings report was one worth cheering.
Want to keep up to date on Focus Media?Add it to your watchlist.
At the time this article was published 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.Fool contributorMatt Koppenhefferhas no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter,@KoppTheFool, or onFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.