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: There was a bad taste in investors' mouths today after Buffalo Wild Wings (BWLD) reported earnings and the stock fell 12%.
So what: Management said third-quarter revenue increased 25% to $246.9 million but fell short of the Street estimate of $253.9 million. Earnings of $0.57 per share were $0.03 short of the estimate.
What really had investors reaching for the sell button, though, was a forecast for 15% earnings growth in 2012, down from a previous estimate of up to 20%.
Now what: Higher costs are hitting Buffalo Wild Wings, which will have an impact on the bottom line. What we should keep in mind is that the company is still growing like a weed, even if growth isn't as strong as some expected. I'm not a buyer at today's forward P/E ratio of 19, but if the stock continues to fall in the next few weeks and investors can get in at a ratio closer to 15, I think it will be a good value.
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