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 manufacturer Blount fell 10% today after the company released fourth-quarter earnings.
So what: The company reported revenue of $229.6 million, which was down 3% from a year ago. The company had quarterly net income of $9 million, or $0.18 per share, which was down $0.01 from a year ago and below the $0.23 estimate from analysts.
Now what: Both North America and Europe saw slowing demand because of economic uncertainty, according to management. But revenue is expected to pick up slightly in 2013, to revenue of $930 million to $980 million, up from $927.6 million last year. With shares trading at 17 times earnings, and profit on the decline, I'll sit out this discount and wait for higher profits or a much lower stock price to get into this stock.
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The article Why Blount's Shares Dropped originally appeared on Fool.com.
Fool contributor Travis Hoium 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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