December 3, 2010
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: Cascade (NYSE: CASC ) shares rose 14% today after the company announced earnings for the third quarter.
So what: Sales were up 33% to $107.4 million, topping analyst estimates of $99.8 million. Net income came in at $8.8 million, or $0.79 per share, more than estimates of $0.63.
Now what: The lift truck industry is experiencing a strong revival as companies begin investing in equipment again. Shipment and order increases in all global markets are strong, and Cascade should bring more gains as the economic recovery continues. We aren't quite back to the level of sales seen in 2007 and 2008, but if the company can get back to that pace, it would be even more profitable because of cost-cutting measures during fiscal 2010.
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