Why Gaslog Ltd.'s Shares Dropped Temporarily 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 LNG vessel owner GasLog fell 11% at the start of trading after reporting a mixed first quarter. After the sharp sell-off, shares settled in at a 1% decline later in trading.
So what: Revenue spiked 162% from a year ago to $57.1 million and beat the consensus estimate of $55.1 million. The bad news was that profit was only up slightly to $6.3 million, or $0.09 per share. On an adjusted basis, earnings per share were $0.13, which still fell three cents short of estimates.
Now what: There was a huge spike in volume shortly after the market opened and that caused shares to drop, but when more normal trading continued shares returned to just a slight drop. That's more reasonable given the growth already on the books and continued expansion that should take place as LNG grows. I think the company is well positioned going forward and a small earnings miss isn't reason for investors to panic today.
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The article Why Gaslog Ltd.'s Shares Dropped Temporarily Today originally appeared on Fool.com.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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