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 equipment supplier Blount International fell as much as 17% today after the company released earnings.
So what: Second-quarter revenue fell 7.8% to $220.4 million and fell well short of the $242.5 million estimate from Wall Street. Earnings were also disappointing at $0.19 per share, below the $0.25 estimate.
Now what: Demand was weak companywide, and management announced the consolidation of saw-chain manufacturing into an existing facility in Portland, Ore. There's just no positive momentum in the business, and with shares trading at 14 times trailing earnings, there doesn't seem to be a lot of value, either. I'd wait for conditions to improve before jumping in and leaving shares alone today.
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The article Why Blount International's Shares Dropped Today originally appeared on Fool.com.
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