Why Mistras Group Shares Plunged

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 asset protection solutions specialist Mistras Group (NYSE: MG  ) sank 11% today after its quarterly results and guidance disappointed Wall Street.

So what: Mistras' second-quarter profit managed to meet estimates, but a miss on the top line -- revenue of $137.7 million versus the consensus of $141.3 million -- coupled with downbeat guidance for 2013 is triggering concerns over slowing growth. Of course, the stock has been rallying over the past couple of months, so a small hiccup shouldn't come as too big of a surprise.

Now what: Management now sees full-year 2013 revenue of $525 million to $535 million, versus the average analyst estimate of $535.64 million. "We believe that our leadership position in Asset Protection Solutions, along with our model which achieves revenue growth both organically and through acquisitions, will continue to be the right model for our shareholders in the future," Chairman and CEO Dr. Sotirios Vahaviolos reassured investors. With the stock now off more than 20% from its 52-week highs, today might even be a good time to buy that growth on the cheap.

Interested in more info Mistras? Add it to your watchlist.

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: 2187760, ~/Articles/ArticleHandler.aspx, 4/16/2014 12:27:28 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...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.