Pall Shares Popped: 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 filtration equipment specialist Pall (NYS: PLL) climbed 10% on Friday after its first-quarter results topped Wall Street expectations.
So what: Restructuring charges weighed on Pall's bottom line, but solid sales -- top-line jumped 16.5% to $705.6 million -- show that the company continues to grow despite the weak economy. In fact, the quarter marks the fifth-straight in which Pall has posted double-digit revenue growth.
Now what: Expect the momentum to continue in the short term. "We are encouraged by the strength of orders in the quarter, an indication of continued growth in a mixed environment," CEO Larry Kingsley said. Of course, with a historically much higher cost structure than gorilla rivals like General Electric (NYS: GE) and 3M (NYS: MMM) , Pall's long-term appeal remains less than ideal.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in 3M. 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 Fool's disclosure policy always gets a perfect score.
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