Why LSB Industries' 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 industrial equipment maker LSB Industries (NYS: LXU) fell as much as 13% today after reporting earnings.
So what: Sales increased 3.2% to $182.4 million and net income increased slightly to $6.7 million, or $0.28 per share. The problem is that analysts had expected a jump in earnings to $0.61 per share, so investors were very disappointed by today's report. Â
Now what: Production challenges were a big dent on the quarter, but going forward the company expects to be in a more normal state of production. If that's the case, today would be a good opportunity to buy the stock on a dip. Shares trade at only 12 times trailing earnings, and there's upside considering this quarter's miss.
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The article Why LSB Industries' Shares Plunged originally appeared on Fool.com.
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