Why Corporate Resource Services Inc's Shares Plunged
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 staffing company Corporate Resource Services Inc dropped as much as 16% today after the company released earnings.
So what: Third-quarter revenue rose 16% from a year ago to $209.0 million and net income nearly tripled to $4.4 million, or $0.03 per share. Growth was helped by acquisitions but organic growth was still a strong 12% in the quarter.
Now what: The top and bottom lines are both improving but not at the pace investors were hoping. In the first three quarters of the year, the company has only made a profit of $0.04 per share, which still puts a lot of premium on a stock trading around $3.50 per share. That's just too expensive for me to jump in today.
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The article Why Corporate Resource Services Inc's Shares Plunged 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.