Atlas Air Worldwide Shares Crashed: 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 aviation outsourcing company Atlas Air Worldwide (NAS: AAWW) fell 11% today after the company released earnings.

So what: This quarter it's all about missing high earnings expectations for Atlas Air Worldwide. Revenue increased 7.9% to $388.2 million, but it fell short of the $407.8 million bar analysts had set. Earnings didn't impress either, coming in at $1.50 per share, short of a $1.89 per share expectation.

Now what: Expectations were not only set out of reach for the fourth quarter, they appear to be too high for 2012. The company said earnings per share would be in excess of $5.10 per share, short of analysts' estimate of $5.69 in earnings per share. Even if the low end of expectations are reached, shares are trading at just nine times earnings for 2012, a decent value considering the company's growth.

Interested in more info on Atlas Air 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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