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 global logistics provider UTi Worldwide
So what: UTi registered $0.26 in per-share earnings during the quarter, which was a penny better than analysts were expecting, but that wasn't enough to offset investor disappointment in other areas of the report. Total sales came in at $1.2 billion, which was short of the $1.22 billion that Wall Street was hoping for. In addition, CEO Eric Kirchner said that though pressure on the company's yield -- that is, net revenue as a percentage of total revenue -- appears to be moderating, he didn't see yield improvements offsetting volume weakness in the upcoming quarter.
Now what: The 10% drop in UTi's stock seemed a little excessive to me -- and the market appears to be in agreement as the drop has since moderated significantly. The continued economic recovery should be a tailwind behind transportation and logistics companies like UTi, as well as Expeditors International
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