UTi Worldwide Shares Plunged: 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 supply chain service provider UTi Worldwide (NAS: UTIW) fell 12% today after the company released earnings.
So what: Revenues rose 5.5% to $1.26 billion, and net income was $28.5 billion, or $0.28 per share. Earnings were in line with estimates, but analysts were expecting revenue of $1.32 billion, and the market reacted by selling off shares.
Now what: More important than the $1.26 billion in total revenue, net revenue grew 9.2% to $443.4 million in the quarter, an impressive number to this Fool. Since each of the company's segments helped contribute to growing revenue and profit, I think the market has overreacted today. The bottom line is still strong, and net revenue growth was solid for UTi Worldwide.
Interested in more info on UTi Worldwide? Add it to your watchlist byclicking here.
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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