Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
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 Russian TV station operator CTC Media (Nasdaq: CTCM ) fell more than 13% in early trading after lowering full-year revenue guidance.
So what: The company behind the CTC and DTV networks now expects revenue to grow 15% in ruble terms, down from an earlier estimate of 20%. The gain would exclude the impact of commissions paid to Video International for sales of ad inventory in Russia last year, the company said in an SEC filing.
Now what: The good news? CTC says adjusted margins should still come in between 34% and 36%. Fair enough. Just don’t take that to mean that the profit forecast -- $1.16 a share, according to Yahoo! Finance -- is safe. A 5% revenue haircut could still have far-reaching consequences. Yet with the stock priced at less than one-fifth the long-term profit growth rate analysts expect, the downside of buying here appears to be minimal. Do you agree? Disagree? Please weigh in using the comments box below.
Interested in more info on CTC Media? Add it to your watchlist.