Why Shares of Terex Jumped
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 maker Terex (NYS: TEX) jumped 26% today after the company released earnings.
So what: Net sales grew 35% to $2.01 billion, just short of estimates from analysts. Earnings per share jumped from a penny last year to $0.75 this year, blowing away the $0.50 expectation from analysts.
Now what: Revenue this quarter and full-year revenue guidance were below estimates, but the company more than made up for it in earnings per share. Terex forecast full-year earnings per share of $1.95 to $2.05, well above the $1.76 analysts expected. With shares trading at only nine times the bottom end of guidance, I think there's room to run and the stock is still worth buying -- even after the today's bounce.
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The article Why Shares of Terex Jumped originally appeared on Fool.com.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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