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 World Fuel Services
So what: Revenue rose 34% in the quarter to $9.48 billion, and earnings were $48.5 million, or $0.65 per share. Earnings per share were in line with estimates, but revenue fell short and shares have been crushed as a result.
Now what: Falling short of expectations is never good for a stock, but the big move south is overdone in my opinion. World Fuel Services is still growing quickly and the company's profits were in line with expectations. The stock now trades at 12 times forward earnings, a price I think is reasonable for a company growing profitably at the moment.
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