Why Pike Electric Got a Shock Today
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 contractor Pike Electric fell 13% today after the company released earnings.
So what: Fiscal-third-quarter revenue rose 23% to $200 million but fell short of the $204 million estimates analysts had set. Earnings per share were up 33% to $0.08, but that also fell short of estimates, which were for $0.10 EPS.
Now what: The biggest takeaway is that construction revenue was up 16%, continuing strong trends in the transmission business. A surge in storm-related business also had a positive impact on revenue, but that's very volatile in nature so investors can't count on that quarter to quarter. I don't think results were as bad as expected and think shares will recover from today's loss as fundamentals continue to improve.
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The article Why Pike Electric Got a Shock Today originally appeared on Fool.com.Motley 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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