Why GT Advanced Technologies' Shares Plunged

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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 GT Advanced Technologies (Nasdaq: GTAT  ) experienced a power outage today and fell 11% after the company reported earnings.

So what: Revenue rose 30% to $353.9 million and the company reported a profit of $79.1 million, or $0.69 per share, but it wasn't enough. Analysts had expected revenue to be $393.5 million and earnings per share of $0.71.

Now what: Guidance of $1.30 to $1.40 in earnings also fell below estimates, but let's take a step back here. Despite the incredible oversupply of solar products in the market GT is still making a profit and shares are now trading at an absolutely ridiculous 3.4 times earnings at the top end of guidance. Also consider that the company had $350.9 million in cash and $75 million in debt to end the quarter. This is a screaming buy in my eyes.

Interested in more info on GT Advanced Technologies? Add it to your Watchlist.

Fool contributor Travis Hoium has no 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.

Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (4) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 17, 2012, at 4:04 PM, millsbob wrote:

    Travis, you don't think the tariff decision has anything to do with it?

  • Report this Comment On May 17, 2012, at 4:04 PM, bigbigdeal3 wrote:

    I bought it last week when it was 6.38. I hope you're right.

  • Report this Comment On May 17, 2012, at 6:48 PM, csqrd wrote:

    I would be very interested to hear from some of you who are selling at these prices. Why?

    I can guess why there are buyers; for the same reasons Travis mentions plus the fact that GTAT management continues to diversify their product offerings and they have the cash to do so, I have been buying for the last few months. My only regret is that I didn't know the stock was going to be on clearance table sale. I wish I had kept a little more cash available. But that's probably really greedy.

    Two years from now, with an almost assured multi-bagger in hand, I think this one will look brilliant.

  • Report this Comment On May 17, 2012, at 7:38 PM, djknow wrote:

    I bought more in the morning and then doubled up in the afternoon. You get what you pay for and in this case I believe I got 3-4 of what I paid for.

    This a well funded healthy small cap with great margins and diversified market segments able to earn nice profits. Way to go GT and thank you short guys for giving me one of my favorites for a song. Can't wait until the squeeze.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1889571, ~/Articles/ArticleHandler.aspx, 10/27/2016 8:57:40 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
GTATQ $0.00 Down +0.00 +0.00%
GT Advanced Techno… CAPS Rating: ***