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.
So what: Revenue was pretty strong, climbing 1% to $571.6 million, beating the $549.8 million that analysts had expected. But higher-than-expected costs pushed profit down, and adjusted earnings per share were $0.91, which was $0.02 below estimates.
Now what: The quarter wasn't all bad, and as the day continues, we've seen a decent recovery from the early bashing the stock took. Higher costs from product development and an expansion of sales teams in Latin America and the Asia-Pacific region were pointed to as drivers of the rising costs. Since these costs are really an investment in the future, they don't set off alarms for me. And with shares trading at just over 10 times forward earnings estimates, I think this dip is a nice buying opportunity for the stock.
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