Why Mistras Group 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 asset protection solutions specialist Mistras Group sank 11% today after its quarterly results and guidance disappointed Wall Street.
So what: Mistras' second-quarter profit managed to meet estimates, but a miss on the top line -- revenue of $137.7 million versus the consensus of $141.3 million -- coupled with downbeat guidance for 2013 is triggering concerns over slowing growth. Of course, the stock has been rallying over the past couple of months, so a small hiccup shouldn't come as too big of a surprise.
Now what: Management now sees full-year 2013 revenue of $525 million to $535 million, versus the average analyst estimate of $535.64 million. "We believe that our leadership position in Asset Protection Solutions, along with our model which achieves revenue growth both organically and through acquisitions, will continue to be the right model for our shareholders in the future," Chairman and CEO Dr. Sotirios Vahaviolos reassured investors. With the stock now off more than 20% from its 52-week highs, today might even be a good time to buy that growth on the cheap.
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The article Why Mistras Group Shares Plunged originally appeared on Fool.com.
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