Why Owens Corning's Shares Dropped
Feb 20th 2013 4:52PM
Updated Feb 20th 2013 5:05PM
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 Owens Corning dropped 10% today after the company released earnings.
So what: Fourth-quarter revenue fell 3.1% from a year ago to $1.16 billion but was in line with expectations. But the bottom line wasn't so strong and earnings per share of $0.11 fell $0.05 short of estimates, leading to the drop today.
Now what: Management was fairly positive about the direction of the business, particularly housing going forward. For now, the recovery isn't fast enough for investors who were met disappointing housing news today, exacerbating the stock's drop. Long-term, I think this is a buying opportunity, and financial performance will continue to improve going forward.
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The article Why Owens Corning's Shares Dropped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. 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 don't 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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