Why Commercial Vehicle Group'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 Group fell as much as 14.7% today after reporting earnings.
So what: Third-quarter revenue fell 8.2% to $187.9 million and the company swung to a loss of $7.3 million. Analysts were expecting an $0.08 profit per share; after reporting earnings of $1.07 per share a year ago, this was a big hit for investors.
Now what: Management said that end markets were weak last quarter and are expected to struggle into next year. A consultant was also hired to help streamline the business, which isn't usually a good sign for a company. I'm definitely not buying in after this report and would wait until revenue and earnings begin growing to take a hard look at the stock.
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The article Why Commercial Vehicle Group'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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