World Fuel Services Shares Plunged: What You Need to Know

Updated

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 World Fuel Services (NYS: INT) have fallen 10% today after the company released earnings.

So what: After the closing bell yesterday, the company reported fourth-quarter revenue of $9.32 billion and income of $50.1 million, or $0.70 per share. For the full year, revenue grew 80% to $34.6 billion and earnings increased 36% to $199.2 million.

Now what: The hit from the market today seems pretty extreme, considering that earnings per share were actually a penny above expectations. Shares are now trading at 13 times forward earnings, a reasonable price after a decent quarter like this one. I'm not buying today, but keep an eye on future growth because shares might be at a discount right now.

Interested in more info on World Fuel Services? Add it to your Watchlist by clicking here.

At the time thisarticle 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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