Why Thermon Group's Shared Dropped
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 equipment maker Thermon Group dropped as much as 11% today, after releasing earnings.
So what: Revenue was up 11.1% from a year ago, to $76.8 million, but that fell short of the $78.1 million analysts expected. Net income was up 12%, to $7.7 million, or $0.24 per share, but also fell well short of the $0.29 in EPS the market expected.
Now what: The double earnings miss is never a good sign for a stock, and Thermon is no different today. The good news is, the company reported record revenue and profits during the quarter, and is growing at a steady rate. The results weren't as strong as Wall Street may have expected, but I think the company is continuing to improve, and long term, the stock will reflect that operational improvement.
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The article Why Thermon Group's Shared Dropped originally appeared on Fool.com.
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