Why GT Advanced Technologies' Shares Plunged


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 GT Advanced Technologies (NAS: GTAT) experienced a power outage today and fell 11% after the company reported earnings.

So what: Revenue rose 30% to $353.9 million and the company reported a profit of $79.1 million, or $0.69 per share, but it wasn't enough. Analysts had expected revenue to be $393.5 million and earnings per share of $0.71.

Now what: Guidance of $1.30 to $1.40 in earnings also fell below estimates, but let's take a step back here. Despite the incredible oversupply of solar products in the market GT is still making a profit and shares are now trading at an absolutely ridiculous 3.4 times earnings at the top end of guidance. Also consider that the company had $350.9 million in cash and $75 million in debt to end the quarter. This is a screaming buy in my eyes.

Interested in more info on GT Advanced Technologies? Add it to yourWatchlist.

At the time thisarticle 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.