Why Columbus McKinnon's Shares Popped
Jan 25th 2013 5:22PM
Updated Jan 25th 2013 7:35PM
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 Columbus McKinnon jumped 10% today after releasing earnings.
So what: Fiscal third-quarter sales were up 7.3% to $153.2 million and profit was $9.6 million, or $0.49 per share. Analysts expected only $143.95 million in revenue and $0.29 per share in earnings, so the results easily flew past what Wall Street expected.
Now what: Management said that uncertainty still exists in the U.S., but order growth in Asia is driving the business right now. Analysts were expecting a decline in earnings, so this may be a sign that the business will improve next year. I think the shares still have room to run, considering how wide the earnings beat was on both top and bottom lines.
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