Why Manitowoc's Shares Dropped
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 equipment maker Manitowoc (NYS: MTW) fell 10% today after missing earnings estimates.
So what: In the first quarter, the company posted an 18% increase in sales to $860.1 million and a tiny profit of $100,000, breakeven per share. Analysts had expected slightly more in revenue and a profit of $0.09 per share.
Now what: The company is still growing revenue in all of its major businesses and expects that to continue throughout 2012. The results may not have lived up to expectations, but I think it leaves a nice buying opportunity for investors. Shares now trade at just 8.4 times forward earnings estimates, and even if those estimates go down, the shares look attractive if the company keeps growing.
Interested in more info on Manitowoc? Add it to yourWatchlist.
At the time this article was published Fool contributor Travis Hoium has no 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 don't 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.