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 Core Laboratories N.V. dropped as much as 10% today after reporting earnings.
So what: Revenue was up slightly in the quarter to $262.9 million but fell short of the $283.0 million analysts were expecting. Net income increased 7.8% to $61.1 million, or $1.35 per share. On an adjusted basis, earnings of $1.45 per share were a penny short of estimates.
Now what: Management said that weather resulted in about a 5% negative impact on earnings in the quarter. The concern was that a company priced as a growth stock isn't growing the top line much at all, which is concerning despite increasing margins. I'd take a cautious approach given the stock's high price and would wait for either a lower price or more growth before jumping in.
3 stock picks to ride America's energy bonanza
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.
The article Why Shares of Core Laboratories N.V. Plunged Today originally appeared on Fool.com.Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Core Laboratories. 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.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.