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 apparel maker Quicksilver fell 10% in early trading today after announcing fiscal first quarter 2013 earnings.
So what: Revenue for the quarter was $431 million, down 3% on a constant currency basis and below the consensus estimate of $464.9 million. On the bottom line, the company lost $0.16 per share, which was even worse than the $0.07 analysts expected the company to lose.
Now what: This isn't historically the company's strongest quarter, but the trajectory shows just how quickly it's going out of style. The company has now lost money over the past year, and with the stock trading at 18 times earnings estimates that will likely come down, I think the stock is overvalued. I'm staying away today and don't expect Quicksilver to come back into fashion any time soon.
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The article Why Quicksilver 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.
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