Why Shares of Layne Christensen Company 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 Layne Christensen Company fell 14% today after reporting disappointing earnings.
So what: Fiscal first-quarter revenue fell 15.5% to $191.2 million, and the company reported a net loss of $27.7 million, or $1.41 per share. Analysts were expecting revenue of $206.6 million and a loss of $0.34 per share.
Now what: Management said that fiscal 2015 would be a challenging year, and mineral services and heavy civil businesses have been down big this year. They are trying to cut costs in an effort to save $12 million to $20 million annually, but the top-line miss was concerning for investors. I'd stay away from shares until conditions improve materially, because even the $0.17 loss analysts projected for this year seems low right now.
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The article Why Shares of Layne Christensen Company Dropped Today originally appeared on Fool.com.Travis Hoium and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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