Why PGT's Shares Jumped
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 window and door maker PGT jumped as much as 11% today after the company released earnings.
So what: First quarter revenue jumped 30% from a year ago, to $49.6 million, and adjusted net income was $3.2 million, or $0.06 per share. Analysts were only expecting $45.7 million in revenue, and $0.03 in earnings per share.
Now what: The company's impact products drove sales growth with the segment up 39% from a year ago. These were strong results, and industry conditions should continue to improve this year as the economy recovers. I'm not a buyer today simply because shares are trading at 25 times forward estimates, a steep price for a company barely swinging into profitability.
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The article Why PGT's Shares Jumped 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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