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 Sun Hydraulics (Nasdaq: SNHY ) plunged nearly 19% in early trading when management's fourth-quarter outlook came in below Wall Street estimates.
So what: So much for a good third quarter, eh? Revenue rose 39% to $53 million while profits doubled to $0.44 a share. Analysts were looking for $0.39 on $52.9 million in sales, according to data compiled by Yahoo! Finance.
Now what: Business will drop off in the fourth quarter, but at a faster rate than Wall Street would like. Management expects revenue to improve just 5% year over year to $44 million, resulting in $0.26 to $0.28 in earnings per share. Analysts were expecting $49 million and $0.32, respectively. Does the miss matter? You tell me. Please weigh in using the comments box below.
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