Why Rofin-Sinar Technologies Plunged

Evan Niu, The Motley Fool

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 Rofin-Sinar Technologies (NAS: RSTI) have plunged today by as much as 16% after the company reported second-quarter earnings and a gloomy outlook.

So what: Revenue totaled $129.4 million, and earnings per share ended up at $0.28. Both fell slightly short of investors' hopes. Consensus estimates had called for $133.2 million in sales and $0.29 per share in profit. CEO Gunther Braun said the weak economic environment from last year has carried into the early part of 2012, hurting results.

Now what: Braun also said demand has begun to recover in the company's machine tool business, as well as in the medical device and solar sectors. Next quarter, sales are expected between $130 million and $135 million, with EPS between $0.27 and $0.30. Those forecasts fall far short of the $144 million in sales and EPS of $0.37 that the Street was looking for.

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Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Rofin-Sinar Technologies.Motley Fool newsletter serviceshave recommended buying shares of Rofin-Sinar Technologies. The Motley Fool has adisclosure policy.
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