Why ITT Corporation's Shares Jumped
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 ITT Corporation (NYS: ITT) rose 12% today after the company reported second-quarter earnings.
So what: Revenue rose 3% from a year ago to $567.5 million, which was above estimates of $569.7 million from analysts. On an adjusted basis earnings per share came in at $0.50, which was up $0.04 from last year and ahead of the $0.37 estimate from analysts.
Now what: Momentum is solid, if not spectacular, on both the revenue and earnings front. For the full year management now expects adjusted earnings to be $1.62-$1.72, so the stock trades at 12.6 times this year's earnings on the low end, even after the jump today. I think that's a reasonable value and shares will continue to move higher.
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The article Why ITT Corporation's Shares Jumped originally appeared on Fool.com.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.
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