Haynes International Shares Dropped Temporarily: 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 Haynes International (NAS: HAYN) fell as much as 18% briefly at the open of trading on extremely high volume. Shares have since recovered and are trading slightly higher as I'm writing.
So what: After the market closed yesterday, the company released fiscal first-quarter results. Revenue increased 21% to $128.9 million and earnings jumped 58% to $8.4 million, or $0.68 per share. Analysts had expected earnings of $0.79 per share.
Now what: A big seller certainly moved the market more than expected at the opening, but cooler heads prevailed later in the day. The quarter may have missed expectations, but 21% growth was solid, and the company is growing earnings at a nice clip. Shares trade at just 16 times 2012 earnings estimates, so I would see any big dips as a nice buying opportunity.
Interested in more info on Haynes International? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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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