Why Tutor Perini's Shares Popped

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 construction company Tutor Perini (NYSE: TPC  ) rose as much as 26% in trading today, after the company announced earnings.

So what: Revenue fell 6%, to $1.1 billion, but net income rose, to $42.6 million, or $0.88 per share -- and that's what investors are focusing on today. On an adjusted basis, earnings per share were $0.54, when analysts had expected just $0.47

Now what: The earnings beat wasn't all that impressive, but it breaks a string of three huge misses in a row. Investors are feeling relieved more than anything. I'm still not crazy about shares after the miss, though, because Perini still has those earnings misses in the recent past, and backlog has been declining recently. I'd sell the pop and cash out today's big gain. 


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

 
 

Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDrawThe Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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 (0) | Recommend This Article (0)

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.

Be the first one to comment on this article.

DocumentId: 2092842, ~/Articles/ArticleHandler.aspx, 7/29/2014 1:14:00 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...


Advertisement