Why Carpenter Technology's Shares Jumped 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 specialty metals company Carpenter Technology jumped 12% today after reporting earnings.

So what: Revenue fell 5% from a year ago to $611.8 million and was short of the $620.8 million estimate from analysts. The good news is that net income was up slightly to $40.9 million, or $0.77 per share, which was $0.07 ahead of estimates.  

Now what: Management is optimistic about industry conditions in fiscal 2014 but doesn't expect a rebound over the next quarter or two. With shares trading at 20 times earnings and little growth on the horizon I think the stock is too expensive to buy for the time being. Keep an eye on revenue momentum over the next year and if it turns positive the investing thesis may change.

Interested in more info on Carpenter Technology? Add it to your watchlist by clicking here.

The article Why Carpenter Technology's Shares Jumped Today 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story