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.

Interested in more info on Thermon Group? Add it to your watchlist by clicking here.

The article Why Thermon Group's Shared Dropped originally appeared on Fool.com.

Fool contributor 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 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.