October 25, 2012
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 CARBO Ceramics (NYSE: CRR ) jumped 13% today after the company reported earnings.
So what: Third-quarter revenue fell 10% to $151.1 million, and earnings dropped by a third to $1.04 per share. The bottom line result was better than expectations because the company was better able to control costs.
Now what: Expectations had fallen so low that CARBO could beat estimates even though results are declining quickly. There is still an oversupply on the poppant market, and fracking is adjusting to low natural gas and oil prices. These challenges aren't abating any time soon, and in the meantime CARBO is too risky for this Fool to jump in.
Interested in more info on CARBO Ceramics? Add it to your watchlist by clicking here.