Why Shares of Kforce Jumped Today
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 staffing company Kforce (NAS: KFRC) fell as much as 10% today, after reporting earnings.
So what: Revenue rose slightly, to $270 million, and net income rose nearly 50%, to $9.3 million, or $0.26 per share. The bottom line beat estimates by $0.02, but top-line results were a little disappointing, and investors pushed the stock lower on concerns over growth.
Now what: The report wasn't all that bad today, and guidance was in line with estimates, so I wouldn't panic sell today. Shares are trading at under 11 times forward estimates, and the company expects to perform up to those results. If the economy picks up at all, the company should benefit and, with profits growing, the stock has room to move higher.
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The article Why Shares of Kforce Jumped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no positions in the stocks mentioned above. 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.