Why Kirby Plunged
May 17th 2012 4:27PM
Updated May 17th 2012 4:28PM
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 Kirby (NYS: KEX) plunged by as much as 12% before recovering to a 7.5% loss after the company disclosed that earnings would be soft this year.
So what: CEO Joseph Pyne presented today at a Bank of America Merrill Lynch Global Transportation Conference and said that the company expects earnings for the year to be on the low end of the previously announced guidance range. Earnings per share are expected between $3.85 and $4.05.
Now what: The consensus estimate for the year calls for $4.02, so Pyne is effectively saying the company should miss the Street's profit forecast for the year. There was no specific mention of what level of revenue to expect, but analysts are asking for $2.3 billion this year. Pyne's presentation at the conference will outline numerous factors that could affect the company's performance, and an audio replay will be available on Kirby's website.
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At the time this article was published Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Bank of America. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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