Chicago Bridge & Iron Shares Popped: What You Need to Know
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 Chicago Bridge & Iron (NYS: CBI) rose more than 10% in early trading after announcing strong third-quarter results and higher 2011 guidance.
So what: Q3 revenue rose 38% to $1.26 billion. Per-share earnings grew at a similar clip, from $0.52 to $0.72 a share. Analysts were expecting $1.17 billion and $0.65 a share, respectively, according to data compiled by Yahoo! Finance.
Now what: Most importantly, the civil engineering firm added $0.05 a share to both the top and bottom end of a full-year forecast issued in the second quarter -- putting Chicago Bridge & Iron on track to earn $2.40 to $2.50 a share in 2011. That's ahead of the sort of long-term profit growth analysts expect, and it's sure to please those who've given the stock a five-star rating in Motley Fool CAPS. Do you agree? Would you buy shares at current prices? Please weigh in using the comments box below.
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