Why PetroLogistics Shares 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 propane company PetroLogistics fell as much as 10% today after reporting earnings.
So what: Sales dropped 18% from a year ago to $159.4 million but the company swung to a net income of $41.4 million. On an adjusted basis net income fell from $64.4 million a year ago to $37.8 million in the second quarter.
Now what: The company experienced a plant outage in June and is now back to full production for the third quarter. Investors can expect a distribution of $0.30 on Aug. 24, which is up $0.04 from a year ago. Results were in line with expectations but I'd be a little worried about the drop in earnings during the quarter. Watch for an improvement on that front as a catalyst to drive the stock higher from today's low.
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The article Why PetroLogistics 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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