Why Movado Popped
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 watchmaker Movado Group (NYS: MOV) are up 10% today on the company's strong fourth-quarter results.
So what: In the fourth quarter, revenue rose 21% to $122.4 million, and the company reported earnings of $10.7 million, or $0.42 per share. To top it off, the company also announced a $0.50 special dividend and an increase in its quarterly dividend, to $0.05 a share.
Now what: All indications are pointing to stronger fundamentals and increased confidence by management right now. If management didn't think results would continue to be strong, it wouldn't be increasing the quarterly dividend or paying out a special dividend. I think this is a great sign for the luxury-watch maker's future and think the stock will continue to rise from here.
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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.The Motley Fool owns shares of Movado Group. The Motley Fool has a disclosure policy.
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