Why Preformed Line Products' Shares Dropped
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 manufacturer Preformed Line Products dropped 17% today, after the company released earnings.
So what: Third-quarter sales dropped 12%, to $100.8 million, and net income dropped 34%, to $6.1 million, or $1.12 per share. All four regional segments saw net income fall, so the bad news was widespread for the company.
Now what: The weak global economy is lowering the appetite for infrastructure projects, and that's having a big impact on results. I don't see the dynamic changing quickly, and that will put pressure on earnings going forward. I'm definitely not a buyer on the drop in sales and net income today, and would wait for a pickup in end markets before jumping in.
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The article Why Preformed Line Products' Shares Dropped 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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