Telvent Shares Popped: What You Need to Know

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 real-time IT solutions specialist Telvent (Nasdaq: TLVT  ) surged right out of the trading gate Thursday after reporting its third quarter, only to see most of those gains pared pretty quickly.

So what: Telvent's quarterly results were a bit of a mixed-bag, which probably explains today's extra-volatile price action. While the company managed to improve gross margins and land exciting new contracts with the likes of PetroChina (NYSE: PTR  ) and BP (NYSE: BP  ) , revenues and profits declined on continued global weakness.

Now what: Despite those persistent macro worries, CEO Ignacio Gonzalez said that Telvent continues "to remain on pace to achieve our non-GAAP revenues and diluted EPS for the fiscal year 2010." While Televent competes against giants such as Siemens (NYSE: SI  ) , IBM (NYSE: IBM  ) , and ABB (NYSE: ABB  ) , it should still be able to benefit from the long-term increase in public infrastructure spending. For that reason, today's roller-coaster ride should be kept in proper perspective.

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