Why PGT's Shares 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 window and door manufacturer PGT, jumped as much as 14% today after the company released earnings.
So what: Revenue rose 35%, to $62.8 million, and came in well ahead of the $57.1 mark set by Wall Street. Net income nearly tripled to $9.9 million, or $0.19 per share, but on an adjusted basis, it was $0.14, $0.04 ahead of estimates.
Now what: This is the third straight quarter of 26% growth or more and that's allowed the company to expand margins. That leverage should continue as training costs for new labor subsides in coming quarters. The stock isn't cheap at 24 times forward earnings, but if this sort of growth continues, the stock certainly has room to run higher.
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The article Why PGT's Shares Jumped 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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