Why Team'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 Team, Inc. jumped 13% today after the company reported earnings.
So what: Fiscal second-quarter revenue jumped from $158 million last year to $201 million, which beat estimates. The company also reported earnings per share of $0.66, which was $0.06 ahead of estimates and easily beat the $0.53 per share the company hit last year.
Now what: The quarterly results were strong, but it may have been more important to see fiscal 2013 guidance raised by $0.05 to $1.90 to $2.05 per share. That means shares are now trading at just over 20 times 2013 estimates, a decent price given the company's growth in revenue and earnings. I'd like to see a little bit of a pullback before jumping in, but I think shares have room to move higher as results continue to get stronger.
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The article Why Team's Shares Jumped originally appeared on Fool.com.
Travis Hoium has no position in any stocks mentioned. 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 position in any of the stocks mentioned. 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.
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