Why Accuride's Shares Crashed 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 commercial vehicle parts maker Accuride dropped as much as 31% today after the company released earnings.
So what: Third-quarter sales dropped 17.1% to $155.3 million, which was well short of the $170.7 million analysts expected. Net loss dropped 47% to $8.4 million, or $0.18 per share, but was also well above the $0.10 per share expected loss.
Now what: It looks like both industry and competitive pressures are hurting Accuride across the board. Class 8 vehicle production was down 1.8% from a year ago when the industry was expecting an increase, which hurt both the top and bottom line. The big surprise was a 32.7% decline in revenue for the Brillion Iron Works division as construction, mining, and oil and gas equipment orders slowed. I don't see any positives here for Accuride and think it's time to jump ship on the stock.
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The article Why Accuride's Shares Crashed 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.
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