Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
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 fashion accessories maker Fossil (Nasdaq: FOSL ) sank 11% today after its quarterly results and guidance missed Wall Street expectations.
So what: Fossil's third-quarter profit actually thumped estimates, but a wide miss on the top line -- $684.2 million versus the consensus of $713.1 million -- coupled with downbeat guidance for the current quarter reinforces concerns over slowing growth going forward. While Fossil experienced solid double-digit growth in Asia, the weak economy in Europe and a stronger U.S. dollar continue to offset those gains.
Now what: Management now sees fourth-quarter EPS of $2.26 to $2.29 on revenue of roughly $930.5 million, versus Wall Street's estimate of $2.28 and $959.4 million, respectively. "[W]e made excellent progress toward our long-term expansion goals in support of a much larger business in Asia and capitalizing on the power of our multi-brand watch portfolio," CFO Mike Kovar reassured investors. With the stock now off about 40% from its 52-week highs and trading at a forward P/E of 13, buying into that turnaround talk seems like a rather inexpensive move.
Interested in more info on Fossil? Add it to your watchlist.