Why World Fuel Services Shares Dropped
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What: Shares of fuel logistics provider World Fuel Services were getting dumped today, falling as much as 12%, after missing revenue expectations in its quarterly report.
So what: Adjusted earnings per share of $0.73 actually beat estimates of $0.69, but that was down from the total a year ago of $0.81. Revenue grew only 5% from the previous year, to $9.94 billion, missing estimates of $10.22 billion. CEO Michael Kasbar put a positive spin on the full-year results, saying that, "despite a stagnant market, we posted record revenue, gross profit, and volume while completing two strategic acquisitions."
Now what: World Fuel's acquisitions should help it continue to grow, but this company is primarily dependent on volatility and increases in oil prices. With the slowdown in Europe, modest recovery in the U.S., and energy markets seemingly stable, I wouldn't expect anything more than modest returns in the near future.
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The article Why World Fuel Services Shares Dropped originally appeared on Fool.com.Fool contributor Jeremy Bowman has no position in any stocks mentioned. 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.
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