October 20, 2011
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 industrial-equipment maker IDEX (NYSE: IEX ) rose by as much as 10% on higher than average volume after reporting strong Q3 results. Unfortunately, the glow didn't last. Weak fourth-quarter earnings guidance took the stock all the way back into negative territory and is down more than 3% as of this writing.
So what: Third-quarter revenue rose 28% to $477 million while adjusted earnings rose 42% to $0.71 a share. Analysts were expecting $468 million and $0.62, respectively, according to data compiled by Yahoo! Finance.
Now what: All the goodwill from that beat disappeared once management released guidance during a call with analysts. Executives said to expect $0.60 to $0.63 a share in Q4 profit, short of the $0.65 Wall Street projected. Does it matter? Would you buy shares of IDEX at current prices? Please weigh in using the comments box below.
Interested in more info IDEX? Add it to your watchlist.