Why Texas Industries' Shares 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 Texas Industries (NYS: TXI) jumped 15% on Thursday after the company released better-than-expected earnings.

So what: Total sales were flat at $174.6 million, and the company recorded a profit of $60.2 million, or $2.15 per share. When adjusted for a one-time gain, the company just barely broke even, but this was still much better than the $0.34 loss analysts expected.

Now what: After falling short of estimates in the past four quarters, this is a great surprise for investors. The company has turned to a profit well ahead of expectations, but analysts are still expecting a loss next quarter and for the next fiscal year. This is typically the company's best quarter, and I'm not excited about buying a stock posting continued losses. I'm going to leave this pop alone today and may even find it a great time to cash out if I owned shares.

Interested in more info on Texas Industries? Add it to your watchlist byclicking 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.

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