Why InnerWorkings' Shares Dropped

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 printing management company InnerWorkings (Nasdaq: INWK  ) fell 13% today after missing earnings estimates.

So what: Revenue grew 30% over last year to $188.5 million on the back of 21% organic revenue growth and net income rose 32% to $2.8 million, or $0.07 per share. But analysts had their sights set even higher, expecting earnings per share of $0.08. The company also raised its revenue guidance by $10 million and reiterated earnings expectations of $0.42-$0.45 per share in 2012.

Now what: This really wasn't a report to fret about if you're an investor. Revenue grew faster than expected, and the earnings miss was only by a penny. Based on the company's earnings guidance, shares trade as low as 23 times 2012 earnings, not bad for a company growing at 21% organically. I think this move was overdone and shares will move higher as we move forward.

Interested in more info on InnerWorkings? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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