Why PH Glatfelter's Shares Dropped 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 specialty paper maker PH Glatfelter fell 10% today after reporting earnings.
So what: Third quarter sales were up 13% from a year ago, to $456.6 million, and net income was up 70% to $34.1 million, or $0.77 per share. On an adjusted basis, earnings were $24.4 million, or $0.55 per share, falling two cents below estimates. Revenue was also slightly below estimates.
Now what: There weren't any glaring flaws in the quarter, it's just that expectations got ahead of the company's results. When we take a step back though, we see that shares only trade at 13 times next year's earnings estimates, which isn't bad for a company expected to grow 9% next year. I think this is a buying opportunity for investors today after dropping on only a slight miss to Wall Street's guess at earnings.
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The article Why PH Glatfelter's Shares Dropped Today 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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